China to implement large-scale cut in taxes, fees

China has lifted its fiscal deficit target to 2.8 percent of GDP for 2019, up by 0.2 percentage points compared with 2018, Chinese Premier Li Keqiang said in his government work report on Tuesday, Xinhua News Agency reported.

The budgetary deficit is projected at 2.76 trillion yuan (US$412 billion), with a central government deficit of 1.83 trillion yuan and a local government deficit of 930 billion yuan, according to the report, released on Tuesday’s opening of the annual meeting of China’s parliament.

The government is targeting economic growth of 6.0 to 6.5 percent in 2019, Premier Li Keqiang said. This new target is less than the 6.6 percent gross domestic product growth reported last year.

China will reduce the tax burdens and social insurance contributions of enterprises by nearly 2 trillion yuan ($298 billion) this year, the report added.