BEIJING: China’s tax authority has launched a two-month investigation into tax-related third-party service providers to ensure companies do not incur additional costs as Beijing presses for tax reforms and fee cuts.
China plans billions of dollars in tax cuts and infrastructure spending to shore up economic growth at its weakest in almost 30 years due to softer domestic demand and a trade war with the United States.
The inspections of tax-related service companies and agencies will be carried out across the country until May 31, state news agency Xinhua said on Sunday, citing a statement by the State Taxation Administration.
The campaign will focus on service providers which may have sold companies unnecessary services or products, or unfairly hiked service charges as companies adjust to Beijing’s new rules intended to ease strained corporate balance sheets by cutting trillions of yuan in taxes and fees.
Tax officials at any level who are found to have colluded with third-party agencies suspected of wrongdoing will be removed from their posts and handed over to judicial authorities, the statement said.
Premier Li Keqiang said during the annual Boao forum on Thursday that the taxation department should promptly prevent abuses by service providers that offset the positive effect of tax reduction.
Li announced earlier this month that China would cut the value-added tax (VAT) for the manufacturing sector to 13 percent from 16 percent, effective on April 1. VAT for the transport and construction sectors would also be cut to 9 percent from 10 percent.
China launches two-month probe into abuses of new tax rules
China launches two-month probe into abuses of new tax rules
- China plans billions of dollars in tax cuts and infrastructure spending to shore up economic growth
- The inspections of tax-related service companies and agencies will be carried out across the country until May 31
Saudi-US Trade & Investment Council holds 9th meeting and discusses 31 joint initiatives
RIYADH: The Saudi-US Trade and Investment Council held its ninth meeting in Riyadh on Jan. 21 and discussed 31 joint initiatives across various fields aimed at achieving the objectives of the Kingdom’s Vision 2030.
The meeting was chaired by the General Authority for Foreign Trade from the Saudi side and the Office of the US Trade Representative from the American side, with the participation of 20 entities from both, according to the Saudi Press Agency.
The council aims to enhance economic cooperation between the two countries by reviewing trade and investment policies, addressing obstacles, and supporting technical dialogue between relevant entities.
It also focuses on developing trade and investment policies, facilitating trade, addressing technical and regulatory obstacles. The council aims to support cooperation in sanitary and phytosanitary measures and agricultural products, enhancing intellectual property protection, and fostering growth in digital trade, innovation, and emerging technologies.
The meeting was attended by several government entities including the Ministry of Economy and Planning, the Ministry of Industry and Mineral Resources, and the General Authority of Civil Aviation.
The Saudi Food and Drug Authority, the General Ports Authority, and the Saudi Data and Artificial Intelligence Authority were also attending, in addition to the Local Content and Government Procurement Authority, and the Zakat, Tax and Customs Authority.
