Report: Companies to see more tax savings

Taxation of companies will be further reduced this year as China aims to maintain the same budget deficit as in 2016, Premier Li Keqiang said as he delivered the Government Work Report on Sunday.

The target for the budget deficit has again been set at 3 percent, he said, providing room to cut the corporate tax burden by about 350 billion yuan ($50.75 billion) and cut local government fees by about 200 billion yuan.

The premier also pledged to improve the taxation system by expanding coverage of preferential policies and reducing the number of tax bands from four to three, making the value-added tax system more efficient and transparent.