BOAO — Premier Li Keqiang on March 28 said the Chinese government would deliver on its promises of larger tax cuts and fee reductions.

Premier Li made the remarks while speaking at the Boao Forum for Asia.

“Reducing taxes and fees is an equitable, inclusive, direct and effective reform measure. It is an important measure to stimulate the vitality of market players and cope with downward pressure on the economy this year,” he said.

Tax cuts and lower social security contributions will reduce the burden on businesses by nearly 2 trillion yuan ($298.51 billion) this year.

Calling this “great news for business, but great pressure for the government,” Premier Li urged governments at all levels to make the most of the current situation by reducing general expenditures, invigorating existing assets and capital, and using increased revenues and reduced expenditures mainly to support tax cuts and fee reductions.

“In this way, we can increase the efficiency of enterprises and enhance market vitality, and find a new way to increase income and reduce expenditures and benefit enterprises and the people,” he said.