China’s National People’s Congress last week has agreed to proposals to ease taxes on businesses by over USD50.7bn.

For instance, for small and medium high-tech businesses, the proportion of research and development expenses covered by the additional tax reduction is to be raised to 75 percent from initial 50.

The Chinese Finance Minister Xiao Jie has announced earlier that the Government is also looking into how it can simplify the country’s VAT regime, which currently has four rates. There were proposals to reduce their number to three.