China has announced it will impose a larger tax burden on state-owned financial institutions (FIs) to pay for other tax cuts.

A statement from China’s finance minister revealed taxes will increase on the profits of state-owned FIs as well as centrally owned firms. For the full year, China plans to cut corporate burdens by nearly CNY2 trillion (USD298.2 billion). The measures were announced at China’s annual National People’s Congress, where lower economic growth targets of 6-6.5 per cent were announced.