China to deepen value-added tax reform

A new round of value-added tax (VAT) cuts is set for April 1. Authorities say CHINA's manufacturing sector will benefit most this time, as the VAT rate for manufacturers will drop from 16 to 13 percent.

For transportation and construction, the rate will be cut from 10 to nine percent. Meanwhile, the postal service, telecommunications, consumer and modern services, and their employees will enjoy a 10-percent additional input VAT deduction before the end of 2021. Besides that, the latest supportive policies will also benefit areas including poverty alleviation and anti-pollution.

CHINA's finance and tax authorities are trying to simplify the application process for all taxpayers. While admitting the increasing discrepancy in the government's revenue and spending, authorities are determined to carry out these deduction measures as soon as possible.

"If we see VAT deductions for small and micro-businesses early in the year as an appetizer, then this round of VAT rate cuts in April is the main course. As of now, we've released all the major tax deduction measures for 2019. This will not only boost market vitality and optimize CHINA's taxation system, but also help push ahead our ongoing supply-side structural reforms. In the next stage, we will closely follow the implementation of these policies," CHINA's Vice Minister of Finance Cheng Lihua said at a media briefing in Beijing on Wednesday.