China to re­place busi­ness tax with VAT

The Pak Banker - - BUSINESS -

China will ex­pand tax re­forms to re­place a busi­ness tax with a value-added tax (VAT) this year, state ra­dio quoted Premier Li Ke­qiang as say­ing, in the lat­est step to bol­ster slow­ing growth.

Top lead­ers have al­ready pledged to cut taxes and ex­pand the govern­ment bud­get deficit this year to sup­port eco­nomic growth, which slowed to its low­est level in 25 years in 2015. "We will fully ex­pand the tax re­forms to help sub­stan­tially re­duce cor­po­rate tax bur­dens," Li was quoted as say­ing. The step would lead to large-scale tax cuts for com­pa­nies, Li was quoted as say­ing. The tax re­forms would help the econ­omy with­stand the down­ward pres­sure and sup­port high-end ser­vice sec­tors, he added.

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