China to cut value-added tax rate for manufacturing, construction sectors

BEIJING (Reuters) - China will cut taxes and fees for all companies by nearly 2 trillion yuan ($298.31 billion) in 2019, with the manufacturing, transportation and construction sectors set to benefit as Beijing looks to stimulate a slowing economy.

China will cut the rate of value-added tax (VAT) for manufacturers to 13 percent in 2019, from the current level of 16 percent, according to a budget report issued at the opening of the country’s annual meeting of parliament on Tuesday.

The VAT rate for transportation and construction sectors will also be reduced to 9 percent from 10 percent, it said.

Purchasing taxes for new energy vehicles will continue to be exempted, with authorities looking to “adjust and improve” their subsidy policies, the ministry said.

Reporting by Zhang Min and Lusha Zhang; Writing by Yawen Chen; Editing by Sam Holmes