China will reduce the tax burdens and social insurance contributions of enterprises by nearly 2 trillion yuan (about 298 billion U.S. dollars) this year, according to a government work report available to the press Tuesday ahead of the annual legislative session.
"We will introduce both general-benefit and structural tax cuts, focusing primarily on reducing tax burdens on the manufacturing sector and on small and micro businesses," the report said.
China will reduce the current value-added tax rate of 16 percent for manufacturing and other industries to 13 percent, and lower the rate for such industries as transportation and construction from 10 percent to 9 percent.
Supporting measures, like increased tax deductions for producer and consumer services, will be taken to make sure that tax burdens in all industries do not go up, the report said.
"We will ensure that the general-benefit tax cut policies issued at the start of the year for small and micro businesses are put into effect," the report said.
The moves aim at strengthening the basis for sustained growth while also considering the need to ensure fiscal sustainability, and are taken to support the efforts to ensure stable economic growth, employment, and structural adjustments, it added.