Tax cuts will help private enterprises grow

China has implemented positive fiscal policy this year, which is expected to reduce 1.3 trillion yuan ($188.4 billion) in taxes, 200 billion yuan more than planned. Tax cuts play a significant role in China's economy, and its importance has increased given the prevailing complicated economic situations at home and abroad.

China's tax cut policy has kept pace with reform. For example, at the beginning of this year, the authorities changed the three-level tax rate to a two-level rate.

Being the largest of its kind, the value-added tax cut has had remarkable effects. On the other hand, the comprehensive and classified combined individual income tax implemented on Oct 1 has lifted the tax threshold to 60,000 yuan a year, with added special deduction reducing people's individual tax burden.