Aggressive tax cuts aim to improve fortunes of small businesses

If 2018 marked the start of "a tax-cut new era" in China, after more than 1.3 trillion yuan ($192 billion) was slashed from the nation's tax bill, then policymakers expect 2019 to be the year when the effects begin to filter through to the economy, and said that more aggressive reforms could be on the way.

Tax reductions for corporate and household sectors have boosted Chinese residents' confidence of a stabilized economy - GDP growth sat at around 6.5 percent in 2018, without higher unemployment or deflation, despite a fast-changing global trade environment, market headwinds, and a host of uncertainties.

"Chinese tax system reform will continue to deepen this year, with more aggressive tax cut plans. But the key is to balance relationships between fiscal income and expenditure, as well as between the central and local governments," said Deng Liping, a professor from the school of economics at Xiamen University.