Mar 05, 2019
China's pledge to cut VAT gets cautious welcome from commodity markets
China's plan to cut the rate of value added tax this year has been generally welcomed by commodity markets, as the lower cost burden would help businesses and stimulate sales at a time of slower economic growth. Prime Minister Li Keqiang announced early Tuesday during an annual meeting of parliament that the government will cut the VAT rate for sectors including manufacturing to 13%, from 16%. VAT for the sectors including transportation and construction will be cut from 10% to 9%.