Oct. 27 (Bloomberg) -- A trial of value-added tax changes in China should be seen as the “official start” of selective easing by the government to support growth, HSBC Holdings Plc economist Qu Hongbin said in an e-mailed note today.
The program announced by the State Council yesterday should provide a fiscal boost for service industries by lowering tax burdens, Qu said.
The central government has “deep enough pockets” to launch a series of tax reduction and targeted subsidy policies to support small and medium-sized enterprises, export-oriented sectors, service sectors, and public housing construction, the economist said.
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