China's firms report shrinking tax burdens: survey

China's efforts to cut taxes have taken effect as firms reported lighter tax burdens, a new survey showed.

The ratio of the total taxes paid by firms to their business revenue stood at 2.3 percent in 2018, down from 2.62 percent in 2017 and 3.41 percent in 2016, according to the Chinese Academy of Fiscal Sciences, which surveyed 203 firms around the country.

The other two major indicators on comprehensive costs and value-added taxes also showed a downward trend.

About 69 percent of those firms said the business environment improved last year, up by nearly 16 percentage points over the previous year.

The tax burdens are expected to shrink further in 2019 as the government keeps cutting taxes and fees.

China cut tax and fee burdens worth over 500 billion yuan (about 71 billion U.S. dollars) for enterprises and individuals in 2016. The number rose to about 1 trillion yuan in 2017 and 1.3 trillion yuan in 2018, and might top 2 trillion yuan this year.