(Yicai Global) March 31 -- China has slashed taxes by CNY402.7 billion (USD56.8 billion) in the first two months of this year, and nearly 40 percent of that was dedicated to overcoming the Covid-19 epidemic, Wang Daoshu, chief auditor of the State Administration of Taxation, said at a press conference today.

The scale is expected to further increase as the country has introduced new policies this month to reduce small businesses' financial burdens and to stabilize foreign trade and investment. Micro and small enterprises, as well as individually-owned businesses, can start to apply for tax breaks based on these policies next month.

Moreover, this year should bring CNY243.8 billion in duty savings, based on policies formed last year. More than half of that involves value-added tax.

On Feb. 10, China's finance ministry announced that the country had pared duties by CNY2.3 trillion (USD324.5 billion) last year, equal to more than 2 percent of its gross domestic product.

Editor: Emmi Laine