(Adds vice finmin's quotes, context)
BEIJING, March 31 (Reuters) - China needs to step up
fiscal policy assistance for its economy, Vice Finance Minister
Zhu Zhongming said on Friday, adding the country will move
steadily on implementing preferential tax and fee policies.
China will effectively ease tax burdens of small firms and
household businesses as its small firms still face many
difficulties and need more support, Zhu told a media briefing.
"Currently, the external environment is volatile, world
economic growth is sluggish, and global trade is being impacted.
The foundation for China's economic recovery is not yet solid
and the triple pressures of demand contraction, supply shocks,
and weakening expectations remain significant," Zhu said.
"To address these risks and challenges, it is necessary to
step up finance policy's macroeconomic adjustments."
The government has set a budget deficit target at 3.0% of
GDP for 2023, widening from a goal of around 2.8% last year.
On Monday, the finance ministry issued a preferential tax
policy for some small firms and household businesses, including
levying a 20% income tax for small firms with annual sales not
exceeding 1 million yuan ($145,808.73).
That tax policy will lower companies' burdens by more than
480 billion yuan per year, Zhu said.
Chinese policymakers have pledged to step up support for the
economy that is recovering steadily from one of worst showings
in nearly half a century last year due to COVID-19 curbs.
($1 = 6.8583 Chinese yuan renminbi)
(Reporting by Kevin Yao; Writing by Bernard Orr and Ethan Wang;
Editing by Jacqueline Wong and Muralikumar Anantharaman)
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