Govt should accelerate tax cuts to invigorate economy, premier says

Premier Li Keqiang urged government departments to speed up the implementation of tax reductions to invigorate the country's economy, amid rising uncertainties about growth on Friday.

Li was speaking with entrepreneurs from the manufacturing, construction and service sectors at the Zhongnanhai leadership compound in Beijing.

The businesspeople said they have received benefits from the tax reduction measures in the past months, after the measures were introduced by Li in the Government Work Report in March. They also offered advice on how to further ease the tax burden on businesses.

After hearing their opinions, Li called tax reduction a great decision made by the Communist Party of China Central Committee and the State Council. It has boosted market confidence in outstanding ways and promoted the stable growth of the economy, he said, adding that the positive factors for economic growth are increasing.

Noting that the uncertainties in the global economic environment are also rising and there remain downward pressures on the domestic economy, Li called for both attention and confidence from the entrepreneurs.

Related departments should follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, invigorate the market through deepening reform and opening-up and ensure the stable growth of the economy, Li said.

He said that tax reduction is the key to improving the business environment and invigorating the market, which will not only stabilize growth and employment but also encourage companies to invest more in innovation for long-term development.

Tax reduction is a comprehensive policy that requires government departments to enhance coordination as they implement various policies, Li said.

The premier attached great importance to such measures as reducing the rate of the value-added tax, increasing the tax exemption for research costs and reforming individual income tax.

The measures should not only ease the tax burden for manufacturing companies but also reduce taxes for construction enterprises, which provide a great number of jobs, Li said, adding that all industries should be covered by the benefits of tax cuts.

Li pledged more efforts to urge government departments and State-owned enterprises to pay off their debts so that the effects of tax reduction are not diminished.

The government will take further measures to deepen reform and opening-up, encourage innovation and entrepreneurship and promote fair competition, Li said, adding that companies should also seize the opportunity to promote high-quality growth.