SBI PO 2023 · Question 3 of 93

Based on the passage 'China's $21B Tax Relief for Businesses': China is likely to roll-out an extensive wave of tax relief measures totaling over 140 billion yuan (equivalent to approximately $21.1 billion) to alleviate the economic repercussions resulting from the prolonged lockdowns stemming from the ongoing coronavirus pandemic. These policies, primarily oriented toward businesses, aim to invigorate and rejuvenate the economy, aligning with the nation's commitment to economic stability. Included in these measures are additional tax rebates to assist companies and substantial reductions in passenger car purchase taxes, which cumulatively amount to a significant 60 billion yuan. This decision comes following a State Council meeting chaired by Premier Li Keqiang. To alleviate the financial burdens borne by businesses, Beijing is set to extend the existing postponement of companies' social insurance contributions until the conclusion of this year. Additionally, the meeting officially sanctioned a plan to double the loan quota dedicated to small and medium-sized enterprises. The meeting endorsed a comprehensive plan upfront to improve the functionality of supply chains, facilitate seamless domestic cargo transportation, and increase the number of domestic flights. Furthermore, the meeting revealed that China is preparing to initiate a series of energy security projects. These tax relief measures build upon the government's earlier announcements, made in early March, which estimated the tax relief package for the year to be approximately 2.5 trillion yuan, including 1.5 trillion yuan allocated for tax rebates. In the latest disclosure, the State Council announced that the overall tax relief amount has been augmented to 2.64 trillion yuan. Despite expanding the scope of these tax relief measures, the Chinese government has refrained from making significant adjustments to its fiscal or financial targets for the year. Economists widely anticipate that the stringent Covid-Zero policy will pose challenges for the Chinese government in achieving its annual GDP growth target of approximately 5.5%. This shift in expectations has prompted Bloomberg Economics to substantially reduce its growth forecast for China to a modest 2%. There is a noteworthy possibility that the U.S. economy may outpace China's growth rate for the first time since 1976 during the current year. According to the latest consensus among economists, as per a Bloomberg poll, China's anticipated growth rate for 2022 is 4.8%. It is essential to underscore that China's financial relief efforts have predominantly been directed toward supporting companies rather than individual households. Choose the sentence/s from the sentences given below that is/are true regarding State council meeting. I. One of the initiatives that was discussed at the State Council meeting to address economic challenges caused by the pandemic was providing tax-related relief. II. The meeting was premiered by Premier Li Keqiang. III. The only initiative taken in the meeting was to enhance supply chain efficiency and boost domestic air travel.

Reading Comprehension

1. Aonly I and IICorrect
2. Bonly II
3. Conly I
4. Donly III
5. Eonly II and III