China's tax and fee cuts, refunds, deferrals surpass 4t yuan in 2022

China's tax refunds, as well as tax and fee cuts and deferrals, exceeded 4.2 trillion yuan ($621 billion) in 2022 as the country sought to stabilize its macroeconomy, according to China's top tax authority on Tuesday.

The figure consisted of approximately 2.46 trillion yuan in value-added tax credits refunded to taxpayers' accounts, over 1 trillion yuan of tax and fee cuts, and 750 billion yuan in deferred tax and fee payments, said Wang Daoshu, deputy head of the State Taxation Administration.

Of the total, 1.5 trillion yuan of tax and fee payments were rebated, deducted or deferred for enterprises in the manufacturing sector, accounting for 35 percent of the total, Wang said.

Small and micro enterprises, along with individual businesses, saw more than 1.7 trillion yuan in tax rebates, reductions and deferrals last year, Wang noted.

Wang emphasized that "market vitality was boosted" by the measures, citing the establishment of over 13 million market entities in 2022 that engaged in tax-related activities.