China’s Finance Minister Flags Further Tax Cuts, Targeted Spending in 2022

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The Chinese finance minister has flagged further cuts to taxes in 2022 as part of efforts to keep the economy operating steadily during the COVID-19 pandemic.

“This year we will implement even larger tax and fee reductions on the foundation of last year’s 1.1 trillion yuan in cuts, and market entities will have an even greater sense of benefit,” said finance minister Liu Kun (刘昆) at a press conference held on 22 February.

“[We] will maintain expenditures at an appropriate level, with focused support for technology, environmental protection, basic living standards, key regional strategies, modern agriculture and key state projects for the 14th Five Year Plan.

“The targeted nature of expenditures will increase, and we will not just sprinkle pepper on top of the noodles.”