A new value-added tax (VAT) refund policy to help struggling small businesses had a devastating impact on the budgets of many local governments in its first month of operation, official data show, underscoring the financial cost of shoring up the economy amid the worst wave of COVID-19 outbreaks since early 2020.
Caixin
China's tax revenue sinks amid rollout of VAT refund policy
Local governments hit as Beijing tries to help businesses cope with slow growth
China will return around 1 trillion yuan of VAT credits to micro and small enterprises between April 1 and June 30 to boost a slowing economy. © Reuters
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