The Chinese government is unlikely to raise value-added tax across the board on the private sector this year, given the ongoing disinflation and the need for macro policy consistency, according to Morgan Stanley.
- A broad tax hike will suppress consumption, investment and raise the risk of disinflation, according to economists including
Robin Xing in a research note - Such a move will also run against Beijing’s recent commitments to enhance policy consistency and rebuild private sector confidence, the note says
- Expect the government to tighten tax collection in selected areas
- Earlier,
China Experts Dismiss Speculation of Gaming VAT Hike: Xinhua - Also, ...