Chinese Government Cuts Taxes on Hard-hit Industries
As part of its ongoing effort to lessen the impact of
the SARS crisis on certain industries, the Chinese government
has decided to cut or waive taxes for the period of May
to September.
Industries which have been particularly hard hit by the
SARS crisis have been air travel, tourism, restaurants,
entertainment and domestic transportation.
In an order going from the Chinese central government
to provincial governments, the Chinese government said
that provincial governments could adjust their tax rates
on certain industries in the period from May 1 to September
30. The provincial governments would have the right to
decide on the rate of the tax cut for each industry, making
its decision based on local conditions.
In a government meeting in Beijing last week, Premier
Wen Jiabao asked provincial officials to put forward revised
budget plans to help the economy in the face of the SARS
crisis. More Chinese cities are cutting taxes to certain
industries to lessen their financial burden.
According to experts, this is the first time such large-scale
tax cuts have been introduced since the founding of the
Peoples' Republic of China in 1949.
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