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CHINA> National
VAT reform to shed corporate tax burden by $17.6B
(Xinhua)
Updated: 2008-11-09 22:00

BEIJING -- China announced on Sunday it would spread a reform of its value-added tax regime to all industries nationwide, which could cut the tax burden on enterprises by 120 billion yuan (about $17.6 billion).

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The reform would help encourage technological upgrading at Chinese companies, said an executive meeting of the State Council, which also put forward a stimulus package of 4 trillion yuan to be spent by the end of 2010 to expand domestic demand.

The reform was aimed at a shift from the existing production-based value-added tax regime to a consumption-based one, which enables Chinese companies to get tax deductions on spending on fixed assets.

 

 

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