Business
18:27, 02-Dec-2017
China revises regulation on VAT
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China on Friday published revisions to the regulation on its value added tax (VAT) scheme.
The VAT coverage was expanded and rates lowered for some goods, according to a decree by the State Council signed by Premier Li Keqiang.
Sales services, intangible assets and real estate were covered with tax rates ranging from six percent to 17 percent, and rates for sales and imports of grain, books and fodder were trimmed to 11 percent from 13 percent.
VCG Photo
VCG Photo
The revisions took effect on Friday.
As the most significant tax overhaul for two decades, VAT has gradually replaced business tax which has been in place for 60 years, streamlining procedure, and avoiding repetitive taxing. It was piloted in Shanghai in 2012 and expanded nationwide in May 2016.
By the end of September, more than 1 trillion yuan (about 150 billion US dollars) had been saved.
The State Council also announced the cancellation of the regulation on business tax on the same day.
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Source(s): Xinhua News Agency