China's VAT reform reduces tax by 53 bln USD
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E-mail Xinhua, October 31, 2014
China's pilot program to replace turnover tax with value-added tax since 2012 has reduced tax by 328 billion yuan (53.3 billion U.S. dollars), the country's tax authority said Thursday.
In the first three quarters of this year, the change has reduced the burden on taxpayers by 145 billion yuan, said the State Administration of Taxation website.
VAT is tax levied on the difference between the cost of production and the price of a commodity on the market. It is favored partly because it can reduce double taxation.
Following regional experiments since the beginning of 2012, the VAT reform in transportation and some modern service sectors was rolled out throughout the country on Aug. 1, 2013.
The program was expanded to railway transportation and postal services in Jan. 1, 2014 and further to the telecommunications sector in June 1.
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