Chinese authorities will reduce VAT rates as of April 1

"This year, a decision was made regarding a large-scale reduction of the tax burden. Reducing the tax rate on value added and social security contributions will reduce the tax burden by 2 trillion yuan (about 298 billion US dollars). This is an important step in the fight against the downward pressure on the economy, "said Li Keqiang.

"As of April 1 this year, VAT will be lowered and as of May 1, social insurance rates will be reduced," said Prime Minister of the State Council.

According to government plans, the VAT rate for the manufacturing industry will be reduced from 16% to 13%, for transport and transportation, construction and other sectors – from 10% to 9%.

Press conference Li Keqiang was held following the results of the second session of the Assembly of Chinese People's Representatives (parliament of the country) of the 13th meeting which ended on Friday.