You are here

China 2016 VAT reform will let industries save US$85b on taxes: stats bureau

BT_20160123_YUAN__2082348.jpg
China's plan to expand its value-added tax (VAT) reforms will let industries that enter the scheme this year pay 560 billion yuan (US$85.1 billion) less in tax than they did in 2015, the National Bureau of Statistics said on Tuesday.

[BEIJING] China's plan to expand its value-added tax (VAT) reforms will let industries that enter the scheme this year pay 560 billion yuan (US$85.1 billion) less in tax than they did in 2015, the National Bureau of Statistics said on Tuesday.

Wang Baoan, chief of the bureau, also said China may raise its ratio of its fiscal deficit relative to gross domestic product to cover the lower tax revenue, but he said such a move would not be aimed at stimulating growth.

On Monday, Premier Li Keqiang said China would expand tax reforms to replace a business tax with a value-added tax (VAT) this year.

Wang also said the government would avoid harsh steps in reducing industrial overcapacity, leverage and inventories.

REUTERS

sentifi.com

Market voices on:

grab

Receive $80 Grab vouchers valid for use on all Grab services except GrabHitch and GrabShuttle when you subscribe to BT All-Digital at only $0.99*/month.

Find out more at btsub.sg/promo

Powered by GET.comGetCom