China to cut taxes by $55bn to boost spending and growth
The Beijing government is to cut taxes this year by CNY380bn ($55bn) to encourage spending and boost growth, shifting China away from its old model of manufacturing-led growth to one powered by consumption and services. Value-added tax will be reduced from four brackets to three and the tax rate for products such as gas and farm items will be cut to 11% from 13%, along with tax breaks for smaller businesses. It is also introducing incentives to boost technology and R&D, and those who pay for their own health insurance will be able to deduct CNY2,400 from their taxable income. 
China is cutting taxes this year by 380 billion yuan ($55 billion) in efforts to encourage spending and boost growth.

The value-added tax system will be reduced from four brackets to three, and the tax rate for products including natural gas and farm items will be cut to 11 percent from 13 percent. Tax breaks are increasing for small and medium-sized businesses with annual income of 500,000 yuan or less, according to a State Council statement.

The government is also rolling out incentives to boost tech and R&D, and from July 1, citizens purchasing their own health insurance can deduct 2,400 yuan from their taxable income.