Economy

China vows to shave taxes by $17.3 billion a year, says report

China will extend some favorable income tax policies to ease the burden on lower and middle income groups, state media said on Wednesday, citing a cabinet meeting chaired by Prime Minister Li Keqiang. The move is expected to cut taxes by 110 billion yuan ($ 17.3 billion) a year, the cabinet said.

China will cut taxes and fees further next year to support struggling businesses, the Finance Ministry said on Monday, echoing promises from the annual Central Economic Work Conference held earlier this month, a meeting of establishment of the agenda of the main leaders of the country.

Preferential tax policies on annual bonuses will run until the end of 2023, while favorable tax policies on share-based incentives will remain in effect until the end of next year, the cabinet said.

The world’s second-largest economy, which has lost steam after a strong recovery from the pandemic last year, faces multiple challenges as a real estate recession deepens, supply bottlenecks persist, and tight Covid restrictions persist. -19 affect consumer spending.

To stabilize economic growth, China will proactively implement fiscal policies next year and make infrastructure investments “appropriately” in advance, the Finance Ministry said on Monday.

Govt approves plans for four mega data centre clusters

China has approved plans to build four mega clusters of data centres in the country’s north and west with the aim of supporting the data needs of Beijing and major coastal centres, according to the country’s top state planner on Wednesday. The move comes as energy-hungry data centres located in China’s east have found it difficult to expand due to limits imposed by local governments on electricity consumption.

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