China to cut value-added tax rate for manufacturing, construction sectors

[BEIJING] China will cut taxes and fees for all companies by nearly 2 trillion yuan (S$4.04 billion) in 2019, with the manufacturing, transportation and construction sectors set to benefit as Beijing looks to stimulate a slowing economy.

China will cut the rate of value-added tax (VAT) for manufacturers to 13 per cent in 2019, from the current level of 16 per cent, according to a budget report issued at the opening of the country's annual meeting of parliament on Tuesday.

The VAT rate for transportation and construction sectors will also be reduced to 9 per cent from 10 per cent, it said.

Purchasing taxes for new energy vehicles will continue to be exempted, with authorities looking to "adjust and improve" their subsidy policies, the ministry said.

REUTERS