China should cut income taxes to spur growth

China should cut corporate and personal income taxes to support the slowing economy amid a trade dispute with the United States, former Chinese finance minister Lou Jiwei said on Sunday.

Facing the nation's weakest economic growth since the global financial crisis, Chinese policymakers are fast-tracking road and rail projects, pushing banks to increase lending, and cutting taxes to ease strains on businesses.

“There is room for cutting the two (corporate and personal) income taxes,” Lou, now chairman of the National Council for Social Security Fund (NCSSF), told a finance forum.

China in October raised the threshold for collecting individual income tax to 5,000 yuan ($720) per month from 3,500 yuan, hoping to boost consumption.