China to further widen VAT reform
Updated: 2013-02-02 10:56
As of Friday, the reform, replacing the turnover tax with a value-added duty in transport and some service sectors, has reduced taxes of over 40 billion yuan ($6.4 billion) for more than 1 million taxpayers in 12 pilot regions, according to a conference held by the ministry.
The ministry said the reform had reduced burdens on lower taxpayers by an average of 40 percent.
Turnover tax refers to a levy on the gross revenue of a business. VAT refers to a tax levied on the difference between a commodity's price before taxes and its cost of production.
The ministry said it will bring the reform in transport and some modern services nationwide, and actively study the possibility of extending the change to more sectors.
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