China’s new tax and fee cuts exceeded 2 trillion yuan in first three quarters
Chinese Premier Li Keqiang called for making more efforts to guarantee the implementation of straight transfer mechanism of fiscal funds, so that the effectiveness of the proactive fiscal policy can be improved.
Premier Li made the remarks while chairing a meeting of the State Council aimed to further implement scaled bailout polices to bolster the economy and ensure smooth functioning of the the market.
China has taken a series of measures to restart its economy as the COVID-19 situation in the country is largely under control.
To mitigate the impact of COVID-19 on its economy, China introduced unprecedented tax cuts and fee reductions. Newly added tax and fee cuts exceeded 2 trillion yuan (about $300 billion) in the first three quarters of 2020, according to the official data at September-end.
Out of the 2 trillion yuan, 1.7 trillion yuan was allocated to primary-level governments. By the end of September, the county-level governments have received 1.57 trillion yuan.
It was highlighted at the meeting that the implementation of large-scale relief policies and direct mechanisms has saved market entities worth hundreds of millions of dollars, supported the creation of nearly 9 million new jobs in cities and towns, and played a key role in economic stability and recovery.