Asia Pacific Tax News
China tax cut package to stimulate economy
China will cut value-added tax rates for selected industries and provide tax rebates for others as part of its efforts to boost a slowing economy. Government officials said they would cut taxes “on a larger scale” in order to boost business activity. JPMorgan Chase & Co. economists estimate the total impact of the tax cuts will be around 2trn yuan ($300bn), or 1.2% of GDP. Tax cuts for graduates and low-income workers have also been announced in a stimulus drive to fend off the effects of the economic slowdown. Companies which hire people designated as “needy” will also qualify for a tax deduction of 6,000 yuan per person per year for three years.
Financial Times Bloomberg China Daily
Pakistan announces tax cuts to boost growth
Pakistan has announced measures to boost growth, including lower taxes for small and medium-sized businesses and cutting taxes on imports of industrial raw materials. Finance minister Asad Umar also said tax measures would be introduced to help the stock market, reports Saudi Gazette. Meanwhile, the High Court in Lahore has ordered the collection of an entertainment tax from all cinemas houses in Pakistan, and has directed the Excise and Taxation Department to implement the order within six weeks.
Saudi Gazette The Nation
South Korea to step up tax evasion probe
South Korea’s tax agency proposes to intensify its probe into corporate tax evasion. Hong Nam-ki, the government’s minister of economy and finance who is also deputy prime minister for economic affairs, said that justice must be achieved by taking robust action against tax evasion.
Modi’s government unveils budget giveaways ahead of India election
Indian Prime Minister Narendra Modi’s government has unveiled $2.8bn in direct payments to India’s small farmers over the next two months and $2.6bn in fresh tax breaks for the middle class ahead of upcoming elections.
Hindustan Times Times of India Financial Times
Japan plans tax break for insider buyouts and reverse mergers
Japan is proposing legislation designed to encourage corporate restructuring that will see businesses gain a broader range of tax-saving options for mergers and acquisitions. The change in the law will also apply to management buyouts.
Nikkei Asian Review
Bali weighs tourist tax
Bali’s regional government has drafted a bylaw imposing a $10 tax on foreign tourists to be charged upon leaving the country. “Tourists come to enjoy our environment and culture. Why not contribute to preserving it?” says I Nyoman Adi Wiryatama, who is the head of Bali’s provincial parliament.
Jakarta Post CNN