Tax, fee reductions support stable growth

The Chinese government has cut taxes and fees this year totaling 1.17 trillion yuan ($170 billion) by June, completing more than half of the 2 trillion yuan annual tax and fee reduction target, the country's tax authority reported on Tuesday.

The easing of tax and fee burdens has boosted enterprises' investment and encouraged consumption, which supported stable economic growth in the first six months, Cai Zili, director of the Property and Behavior Taxation Department of the State Taxation Administration (STA), said at a news conference.

Individual income tax declined by 30.6 percent year-on-year from January to June, accounting for the largest drop among major taxes, due to the reform of the individual income tax system last October and the introduction of special deductions in January, said the STA.