China's Finance Minister: Tax cuts are a top fiscal priority in 2019

Omkar Godbole FXStreet Contributor

China's main tool to prop up the slowing economy in 2019 is tax cuts, Finance Minister Lui Kun reportedly said on Thursday.

The world's second-largest economy slashed its GDP target to 6 to 6.5 percent this year from the 2018 target of 6.5 percent amid an ongoing trade war with the US.

Authorities, however, have ruled out "flood-like' stimulus to counter the slowdown.

Key quotes

China seeks to help manufacturers and small firms with tax cuts.

Deepening VAT reforms is a key priority.

Pressure to balance fiscal revenue and spending is very pronounced in 2019.

Will guide companies to increase spending on technology, upgrade supply chain.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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