China to Deepen Business Tax Cuts to Counter Slowdown: Xinhua

China will promptly implement new and greater tax and fee reductions to ensure a stable economic start in Q1, as renewed downward pressure requires greater cross-cycle policies, Xinhua News Agency reported citing Premier Li Keqiang, who spoke in a meeting touting tax and fee cuts. Deduction for R&D expenses and value-added tax rebates should be increased to promote the upgrade of manufacturing enterprises, while targeted measures should be given to the service industries hurt by the pandemic to stabilize employment, Xinhua said. The central government will continue to increase transfer payments to local governments to ensure tax and fee cuts, the newspaper said.