Tax reduction campaign brings welcome boost to real economy

KUNMING - Li Yunxia's company will save about 6 million yuan ($940,000) in annual operating costs, thanks to the VAT rates cut rolled out in China in May.

Li is the tax manager of Yunnan Raycom Technology Industry Investment Co in Yunnan province.

"The annual sales volume of our company is about 1 billion yuan. According to the new VAT policy, the tax rate will be decreased to 10 percent from 11 percent, which could save us about 1 percent of operating costs," Li said.