Govt contemplates reducing business tax

10 Dec '08

1 min read

China has witnessed rapid growth resulting in a booming economy in the past few years and was and considered an export power house. But since the unfolding of the economic crisis, exports have begun to be affected and are witnessing a slowdown in the extremes.

The government on its part is trying to boost by coming out with favourable measures including increasing duty drawback rebates twice in the last few months and also trying to ease credit flow to the enterprises.

Now there are reports emanating that the government is contemplating lowering business taxes by 1 percent as part of its overall efforts. Business tax in China varies from 3-20 percent and netted the government US $131 billion in revenue in 2007.

This good news has come along with other news reported in the last week of the Central Bank also taking measures to improve the capital adequacy ratio of banks so that they may extend more credit in these difficult times.

The government in the past had also announced plans to lower export tariffs on agricultural goods by up to 30 per cent.

Fibre2fashion News Desk - China

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