RMB Photo:VCG

China's Ministry of Finance (MOF) pledged on Monday to further reduce taxes next year as part of the government's agenda to assist Chinese enterprises to resist slowdown pressure. In 2021, an estimated one trillion yuan ($156.9 billion) of tax was cut. 

The ministry also said it will designate property tax trial reform zones, enhance financial regulation, and reduce risks linked to local government bonds. 

Tian Yun, a Beijing-based economist, told the Global Times on Monday that the trial of the property tax is aimed at solving the long-term problem of China's fiscal revenue heavily relying on taxes from the real estate sector.

"The trial will be an early pilot and can also provide experience for laws on property tax," said Tian.

During a video meeting of national financial work held on Monday, Liu Kun, the minister of finance, provided a report addressing 2021's achievements, while looking forward to 2022. 

Further reducing business tax burden to stimulate China's domestic market in 2022 was a key theme of the meeting. The MOF said it will monitor the implementation of multiple tax reduction policies, and enhance targets for small and medium-sized enterprises. 

With increasing domestic market demand, the MOF has planned to enhance the effectiveness of fiscal investment by all levels of the government, like government's investment on building new infrastructure projects. 

And, the government will take an active role in providing stronger supervision of public sector investment. The ministry also vowed to increase inputs on new technology innovations, new energy development and environmental protection. 

Tian predicted that China might face economic downward pressure in 2022 but in a low scale. Therefore, structural economic stimulus, such as tax cuts, will be implemented.

On the international trade aspect, the MOF reported that China's average tariffs level is being reduced to 7.4 percent, which is lower than a majority of other economies. 

Global Times