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China revises regulation on value added tax

Xinhua | Updated: 2017-12-02 13:40
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BEIJING - China on Friday published revisions to the regulation on value added tax (VAT).

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 6 percent to 17 percent, and rates for sales and imports of grain, books and fodder were trimmed to 11 percent from 13 percent.

The revisions took effect Friday.

As the most significant tax overhaul for two decades, VAT is replacing 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) had been saved.

The State Council also announced the abolishment of the regulation on business tax Friday.

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