Chinese government moves to cut.........>

CHINA PRESS: Chinese government moves to cut business feeds and establish a new

value-added tax system will ease the business tax burden by at least CNY1

trillion this year, the South China Morning Post reported late Monday, citing

Chinese Finance Minister Xiao Jie. Xiao told the newspaper that as of the end of

August the new VAT system had cut business taxes by about CNY1.6 trillion since

its launch in 2013. Xiao said China's fiscal deficit would fall to the targeted

CNY2.38 trillion this year and the fiscal deficit-to-GDP ratio would fall below

3% due to "stronger-than-expected economic growth," according to the Post.

Regional debt ceilings will be created to manage debt risks incurred by local

governments, Xiao said, stressing that debt issued by local government financing

vehicles (LGFV) is not government debt but rather corporate debt. He also said a

property tax system could be launched in China but "ample research and study"

was still needed. Deputy Finance Minister Hu Jinglin said more tax pilot

programs would be created in designated industrial parks, the newspaper

reported. (South China Morning Post)