A tax clerk shows a taxpayer the QR code to download Jiangsu's provincial tax service application at the local taxation bureau in Rugao, Nantong, east China's Jiangsu Province, April 12, 2023. [Photo/VCG]

China's tax and fee cuts and related preferential policies have grown more targeted and tailor-made this year to better boost the economy with a steady and strong recovery by unleashing business vitality, officials and experts said.

Their comments came as Wang Daoshu, deputy head of the State Taxation Administration (STA), said at a news conference on April 6, 2023, that China is expected to reduce tax and fee charges for businesses by 1.8 trillion yuan (261.62 billion U.S. dollars) this year via preferential tax policies and tax credit refunds.

Wang said tax and fee cuts are a key part of a proactive fiscal policy. Since the beginning of this year, the Ministry of Finance and the STA announced the extension and improvisation for existing preferential tax and fee policies, which are expected to reduce business tax and fee payments by another 1.2 trillion yuan.

China has recently extended some preferential tax breaks for low-profit small enterprises and self-employed individuals and continued pretax deductions for research and development expenses of enterprises.