BEIJING: China will reduce the number of different rates in its newly-rolled out value-added tax (VAT) scheme and look to iron out other shortcomings in a system that it said will reduce companies’ tax burden by 500 billion yuan (Dh266.73 billion; $72.62 billion) this year.
“We will further standardise and improve the VAT system in accordance with the requirements for the modern taxation system. We will simplify VAT rates appropriately,” the finance ministry said in an update last Friday.
The ministry said having multiple VAT rates would “inevitably” result in the problem of different VAT rates being applied to similar business, impeding competition and hindering VAT from playing a neutral role. (Reuters)
