Trade spat down­side to be eased with fis­cal mea­sures

China Daily (Latin America Weekly) - - Front Page - By CHEN JIA chen­jia@chi­

China will push for­ward a proac­tive fis­cal pol­icy, in­clud­ing fur­ther tax cuts, and boost govern­ment ex­pen­di­tures to ease down­ward eco­nomic pres­sure amid Sino-US trade ten­sions, Fi­nance Min­is­ter Liu Kun told China Daily in an in­ter­view on Thurs­day.

The proac­tive pol­icy stance, how­ever, does not mean mas­sive eco­nomic stim­u­lus mea­sures, he said.

“We are study­ing mea­sures to fur­ther cut taxes and re­duce fees, aim­ing to ease the bur­den in the cor­po­rate sec­tor,” Liu said. “A spe­cial de­duc­tion plan for per­sonal in­come tax is also be­ing re­searched to in­crease in­di­vid­ual in­comes and boost con­sump­tion.”

The to­tal tax cut this year is ex­pected to ex­ceed 1.3 tril­lion yuan ($189 bil­lion), higher than the 1.1 tril­lion yuan tax cut tar­get set at the be­gin­ning of this year, the min­is­ter said.

Ad­di­tional govern­ment spend­ing, in the mean­time, will sup­port key con­struc­tion projects and im­prove peo­ple’s liveli­hoods, although fis­cal in­come growth is likely to slow down in the sec­ond half of this year, Liu said.

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