VAT pi­lot pro­gram cut taxes by $53.3 bil­lion

China Daily (Canada) - - NEWSCAPSULE -

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.

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