China cut $238b taxes and fees for private firms in 2023

China has cut 1.69 trillion yuan ($237.89 billion) taxes and fees for private enterprises in 2023, making private taxpayers the biggest beneficiaries of the country's tax policies, according to a national conference on taxation that concluded on Thursday. 

According to the annual taxation conference held by State Taxation Administration, total tax and fee payment rebates, deductions or deferments were worth 2.23 trillion yuan in 2023. Private sector, in particular, accounted for 75.7 percent of such cuts and deferrals.

The manufacturing sector and related wholesale and retail industries enjoyed 949.53 billion yuan of such support, while micro, small and medium-sized enterprises also saved about 1.43 trillion yuan in taxes and fees. 

Notably, enterprises of advanced manufacturing, industrial machine, and integrated circuit enjoyed an additional tax cut of 120.85 billion yuan last year. 

The tax authority said more efforts will be made to implement more favorable tax policies and improve the quality and efficiency of tax services to help optimize China's business environment and further stimulate market vitality.