China plans major VAT cut for manufacturers

|About: Deutsche X-trackers Harves... (ASHR)|By:, SA News Editor

China is planning to cut the value-added tax rate that covers the manufacturing sector by 3 percentage points as part of measures to support the slowing economy, Bloomberg reports.

The decision could deliver a boost worth up to 600B yuan ($90B) or 0.6% of GDP, according to Morgan Stanley.

Officials have increasingly turned to tax policy to support growth as debt-fueled spending and monetary policy become increasingly constrained.

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