By Xu Wei | China Daily

Premier highlights the need to implement structural tax cuts to reduce business costs

Premier Li Keqiang has pledged stronger market regulation measures for raw materials as part of broader steps to reduce business costs and maintain China's major economic indicators within a proper range.

Speaking at a symposium soliciting opinions from experts and entrepreneurs on the economy on Friday, Li stressed the need for a scientific implementation of targeted macro regulation and to continue with a targeted implementation of structural tax cuts.

The premier listened to economists Zhang Xiaojing and Peng Wensheng and executives from Baiyun Power Group, Zhejiang China Commodities City Group Co Ltd and online travel agency Trip.com.

While speaking positively of the government's rollout of tax cuts and fee reductions, they highlighted the mounting costs faced by businesses due to the hike in international bulk community prices.

Li said that the economy has taken on a momentum of steady recovery this year, and recovery is now on a more stable footing.

In a sign of faster-than-expected economic recovery, the purchasing managers index for China's manufacturing sector came in at 51.9 in March, up from 50.6 in February, according to the National Bureau of Statistics. The NBS is slated to unveil major economic indicators for the first quarter on Friday.

With renewed uncertainties from the complex and challenging international environment and uneven domestic recovery, it is important to take on a comprehensive and objective perspective on economic performance and pay equal attention to macroeconomic data and the experience of market players, Li said.

He reiterated the need to maintain the consistency, stability and sustainability of macro policies, avoid sharp policy U-turns and properly guide market expectations.

He urged full implementation of various aid measures for smaller firms and self-employed individuals, saying that the policy that grants extra tax deductions for business research and development costs must be put to better use to spur innovation and upgrading of the manufacturing sector.

The premier called for financial institutions to scale up financial services for smaller firms and the self-employed, guide more funds to flow into the real economy and effectively prevent risks.

A stable job market is the pillar to stabilizing economic fundamentals, and the government will always give priority to the creation of jobs, he said, adding that the employment channels for key groups such as college graduates must be expanded with market methods.

The premier stressed the significance of removing unreasonable barriers that constrain business growth with reforms to streamline administration and bolster compliance oversight and services, saying that administrative services should be enhanced to create more market players.