China to cut 1.8t yuan in taxes, fees for businesses this year

China is expected to reduce tax and fee burden for businesses by 1.8 trillion yuan ($261.62 billion) this year via both preferential tax policies and tax credit refunds, Wang Daoshu, deputy head of China's State Taxation Administration, said at a news conference on Thursday morning.

Wang said tax and fee cuts are part and parcel of a proactive fiscal policy. Since the start of this year, China's Ministry of Finance and the State Taxation Administration have announced the extension and improvisation for existing tax and fee preferential policies, which are expected to reduce tax and fee payments for businesses by another 1.2 trillion yuan.

With the continued value-added tax (VAT) credit refunds combined, this will relieve tax and fee burden by 1.8 trillion yuan for market players this year.