New tax cuts increase disposable incomes of Chinese consumers

BEIJING - New tax cuts may have boosted consumers' income by 116 billion yuan ($16.73 billion), which could increase domestic consumption by 81 billion yuan, Asian investment bank Nomura said in a research note.

The latest round of tax cuts may also raise consumption growth and nominal GDP growth by 0.22 and 0.08 percentage point respectively, Nomura said in the note. "We expect more substantial tax reforms in the coming months."

The special additional deductions from taxable personal incomes, unveiled on Oct 27 in the form of draft temporary measures, are expected to shore up the Chinese economy amid external uncertainties.