In this Sept 16, 2014 photo, workers assemble electric cars in a factory in Zouping, East China's Shandong province. China’s finance minister said on March 25, 2018 that the country will further step up optimization of its taxation system and structure. (PHOTO / AFP)
BEIJING – China will step up optimization of its taxation system and structure while paying close attention to international tax reform, China's finance minister said Sunday.
Value-added tax rates will see further adjustments and those in sectors including manufacturing and transportation will be lowered
Liu Kun, Finance Minister, China
Value-added tax (VAT) rates will see further adjustments, and those in sectors including manufacturing and transportation will be lowered, the minister, Liu Kun, said while addressing the China Development Forum.
READ MORE: China to press ahead with value-added tax reform
A total of 918.6 billion yuan (about US$145.5 billion) was saved last year through China's ongoing reform to replace business tax with value-added tax (VAT).
As the most significant tax overhaul for two decades, VAT is replacing the business tax, which has been in place for 60 years, streamlining procedures, and avoiding repetitive taxing. It was piloted in Shanghai in 2012 and expanded nationwide in May 2016.
ALSO READ: China announces tax reduction in favor of businesses
China will also reform its personal income tax system to increase tax breaks in relation to spending on children's education and critical illness, said the minister.
The annual forum, with "China in the New Era" as its theme, has brought together nearly 30 globally renowned scholars, including seven Nobel laureates, and more than 80 executives of Fortune Global 500 firms.
Copyright 1995 - 2024. All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily. Without written authorization from China Daily, such content shall not be republished or used in any form.