Special Report: Global Financial Crisis
BEIJING, Nov. 10 (Xinhua) -- China's government on
Monday announced it would extend its value-added tax (VAT) reform to all
industries nationwide from Jan. 1, 2009, to reduce the tax burden on companies
by more than 120 billion yuan (17.6 billion U.S. dollars) next year.
The State Council, in an executive meeting, passed in
principle regulations on VAT, consumption tax and business tax for promulgation
after advised revision.
As part of a stimulus package of 4 trillion yuan to
be spent by the end of 2010, the reform was aimed at a shift from the existing
production-based to a consumption-based VAT regime, which would enable companies
to get tax deductions on spending on fixed assets.
It also scrapped policies that exempted imported
equipment from VAT, and removed foreign-funded companies from eligibility for
tax rebates on domestic equipment purchases and put them on an equal footing
with domestic companies.
The VAT rate for small businesses and the
self-employed who fell into the small-scale taxpayers category was reduced to a
universal 3 percent from 6 percent for industrial firms and to 4 percent for
commercial companies, while the VAT rate for mineral products rose back to 17
percent from 13 percent.
The reform would help encourage technological
upgrading at Chinese companies, boost domestic demand, and push for industrial
restructuring, said the meeting.
China plans 10 major steps to spark growth as fiscal, monetary policies ease
BEIJING, Nov. 9 (Xinhua) -- China will take 10 major steps to stimulate domestic consumption and growth as it turns to an "active" fiscal policy and "moderately easy" monetary policy, an executive meeting of the State Council said on Sunday. Full story
China's 4 trillion yuan stimulus to
boost economy, domestic demand
BEIJING, Nov. 9 (Xinhua) -- China said on Sunday it will
loosen credit conditions, cut taxes and embark on a massive infrastructure
spending program in a wide-ranging effort to offset adverse global economic
conditions by boosting domestic demand.
This is a shift long advocated by analysts of the Chinese
economy and by some within the government. It comes amid indications that
economic growth, exports and various industries are slowing. Full story
China adopts "active" fiscal,
"moderately easy" monetary policies to boost
economy
BEIJING, Nov. 9
(Xinhua) -- China has decided to adopt active fiscal policy and moderately easy
monetary policies to boost fast but steady economic growth by expanding domestic
demand, according to an executive meeting of the State Council on Sunday.
It is estimated that investment into infrastructure,
social welfare and other key sectors will amount to four trillion yuan by the
end of 2010. Full story
China tries to revive economy despite
daunting challenges
BEIJING, Nov.
9 (Xinhua) -- Although China doesn't celebrate Christmas, Lou Qijun is one of
the many Chinese toy and gift manufacturers who anticipates a visit from Santa
Claus every year in the form of seasonal orders from the Europe and North
America.
Not so this year, says Lou, chairman of Yiwu Qiling Toys
Co. Ltd., a leading toy producer in east China's Yiwu City, Zhejiang Province,
after returning from the Canton Fair, the country's biggest trade show which
concluded on Thursday. Full story
