Alliott Group’s monthly global tax digest for March
Welcome to March’s edition of TaxPulse
A monthly media round-up of news, views and comment pertaining to global taxation, provided by Alliott Group’s International Tax Services Group.
Asia Pacific Tax News
China unveils $298bn tax cuts to boost growth
Chinese number two Li Keqiang has outlined plans to cut billions of dollars in taxes in order to boost the world’s second-largest economy. Mr Li told 3,000 delegates at the National People’s Congress that China would aim to deliver nearly 2 trillion yuan ($298bn) of cuts in taxes and other company fees. A value-added tax for transportation and construction sectors will be reduced from 10% to 9%, and VAT for manufacturers will fall from 16% to 13%, he said.
BBC News South China Morning Post China Daily
Trump seeks reciprocal tax from India
President Trump has said that he wants a reciprocal tax or at least some kind of tax from India, which described as a very high-tariff nation. Referring to his often-cited example of the iconic Harley-Davidson motorcycles, the President said: “When we send a motorcycle to India, it’s a hundred per cent tariff. They charge 100% when India sends a motorcycle to us, we brilliantly charge them nothing. So, I want a reciprocal tax or at least, I want to charge a tax. It’s called the mirror tax, but it’s reciprocal.” Trump added that the U.S. could not allow a country to charge it 100% while it got nothing for the exact same product.
Hindustan Times News 18 Economic Times
Work on China property tax law ‘steadily advancing’
Senior parliamentary officials in China say the drafting of a property tax law – which has been under consideration for more than a decade – is “steadily advancing.” “At present, relevant departments are perfecting the draft law and discussing “important issues” related to it, said an official.
Philippine tax reform hits foreign investment
Foreign direct investment in the Philippines has fallen for the first time since 2015, down 4.4% on the year to $9.8bn in 2018. Investors are worried that President Rodrigo Duterte’s proposed tax reform could hurt the investment environment.
Nikkei Asian Review