China's finance ministry published a draft law on consumption taxes yesterday that would give China's cabinet the power to adjust the rates applied to various goods when necessary.
The draft law also gives the cabinet the ability to launch pilot programs that would allow for adjustment of rates and products subject to taxation.
Beijing has been reducing tax burdens on companies and consumers in recent months to support growth and encourage domestic spending.
Meanwhile, China raised its 2025 sales target for electrified cars as the government tries to spur an industry that is showing signs of slowing down.
The country wants about 25 percent of new cars sold by 2025 to be electrified, according to a draft policy published by the Ministry of Industry and Information Technology on Tuesday.
Its last roadmap on the industry, announced in 2017, called for new energy vehicles - all-electric, fuel-celled autos and plugin hybrids - to make up more than 20 percent of vehicle sales by 2025.
The target signals electric cars remain a priority for the government as it wants to combat pollution and reduce reliance on imported oil.
The onshore yuan fell by 22 basis points to 7.0471 per dollar, an over-one-month low.
Separately, ICBC International projects China's GDP growth will fall below 6 percent next year as some economic barometers predict a slowdown and Hong Kong stocks are forecast to continue underperforming compared to mainland stocks.
BOC International expects a Sino-US trade deal to be partly reached in the second half next year and the yuan is expected to reach around 6.85 per dollar by the year-end of next year, compared to an expected 7.05 per dollar this year-end.