China plans a 3 percentage VAT reduction for manufacturers
According to a source close to the subject, China is planning a 3 percentage point VAT reduction for the manufacturing sector in the context of measures to support the slowing economy.
According to the source that does not want the name to be disclosed due to the fact that the information is not publicly available, the VAT discount can be announced at the annual National People's Congress, where political leaders gather this week.
Chinese Prime Minister Li Keqiang will announce his annual report on economic policy, which sets out the objectives for fiscal and monetary policy. Morgan Stanley estimates that a 3-point VAT reduction of $ 600 billion ($ 0.6 billion - 0.6 percent of GDP) can provide support.
