Export tax policy to be improved

CHINA has decided to improve its export tax rebate policy to reduce the business burden and bolster foreign trade, according to a State Council executive meeting chaired by Premier Li Keqiang yesterday.

The current seven tax brackets will be cut to five, and some rates will be raised according to international common practice, according to a statement released after the conference.

Effective from November 1, the 15 percent bracket and part of the 13 percent bracket will be lifted to 16 percent. The 9 percent notch will be adjusted to 10 percent or 13 percent, and the 5 percent tier to 6 or 10 percent.

However, export rebate rates of high energy consumption and seriously polluting goods as well as those involved in industrial capacity cuts will remain unchanged.

The government expects the policy to facilitate supply-side structural reform, ease burdens on the real economy, and stabilize foreign trade growth amid complicated global circumstances.

Tax refund procedures will also be simplified, with the year-end goal of shortening the average time needed from 13 work days to 10. Businesses with a good record will see an even faster and easier process.

Paperless applications will be promoted, and service businesses will be encouraged to help tax refunds for small and medium-sized enterprises.

China has also decided to speed up renovation of its shantytowns to improve the living conditions of people with housing difficulties. The meeting vowed to speed up revamping shantytowns and ancillary facilities, and tighten supervision over construction quality and safety in accordance with the requirements of the 2018 government work report.