VAT pilot program cut taxes by $53.3 billion
China’s pilot program to replace a turnover tax with a value-added tax since 2012 has reduced taxes by 328 billion yuan ($53.3 billion), the country’s tax authority said.
In the first three quarters of this year, the change has reduced the burden on taxpayers by 145 billion yuan, the State Administration of Taxation said on its website.
VAT — value added tax — is levied on the difference between the cost of production and the price of a commodity on the market. It is favored partly because it can reduce double taxation.