Chinese Premier Li Keqiang urged on Friday further tax cuts and fee reductions to stimulate market vitality and ensure the improvement of people's livelihood and  maintain steady economic growth.

Li made the remarks at a work conference in Jinan, East China’s Shandong Province, and had an in-depth exchange with senior officials from Shandong and other provinces.

Attendees said that the strong implementation of tax cuts and fee reductions benefit many people and significantly alleviate the financial burden of market entities. The individual income tax reform of China has significantly increased the income of Chinese households, and played an important role in stabilizing expectations of growth. 

Li pointed out that hundreds of millions of market entities were the "pillars" of maintaining stable employment and the "engine" that drives economic growth. 

Although tax cuts and fee reductions will lower fiscal revenues in the short term, they will enhance the confidence and motivate more companies to invest and develop, thus expanding employment, and ultimately achieving sustainable economic growth. 

Governments at all levels should work together to ensure that the financial burden of all industries is lowered, in particular to stabilize the cost of agricultural production, Li said.

The central government is fully prepared to implement tax cuts and fee reductions to balance national revenue and expenditures, and raise profits given to the government by financial institutions and state-owned enterprises, and increasing local transfer payments, Li said.

Li said governments at all levels must tighten their belt and find workable means to raise funds to lighten the burden on enterprises.

He urged local governments to be thrifty and use the savings to construct key projects and improve people's lives.

Li stressed that China's economy remains very resilient, and there is enough room to use policy instruments to keep it on a healthy road of growth. 

Xinhua - Global Times