China’s tax cuts next year expected to reach 1% of GDP

The People's Bank of China (PBOC) said it had increased the rate on 7-day reverse repurchase agreements by 5 basis points (bps) to 2.55 percent.

BEIJING: China’s tax cuts next year could exceed the equivalent of 1% of gross domestic product (GDP), a central bank adviser said in remarks published on Monday, in a sign policymakers might be considering another round of tax reductions.

Beijing has pledged a more proactive fiscal policy to shore up the world’s second-largest economy, where growth eased to its slowest pace since the global financial crisis as a campaign to tackle debt risks and the trade war with the United States begin to bite.