April 1st massive reduction of value-added tax (VAT) will take effect

China will continue to push forward reform and opening up to energise the main market players, strengthen driving forces for economic development, and tackle challenges in economic development occording to China’s Premier Li Keqiang at the Bo’ao Forum for Asia.

The reduction is expected to cut 2 trillion yuan (298 billion U.S. dollars) in taxes for more than 30 million enterprises in China.

During Premier Li’s visit to Jinpan Technology, an electrical equipment
manufacturer, he was told that the company will save more than 20 million yuan in taxes under the VAT cuts, and the company plans to invest the money to build a new plant.

“The purpose of the big scale cuts is to leave more profits to companies, boosting the companies’ capability and confidence to develop new business, providing more employment opportunities,” Li said.

Source: CGTN.com