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      VAT reform eases taxes by 267.9 bln yuan

      2014-07-25 08:15 Xinhua Web Editor: Qin Dexing
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      China's value-added tax (VAT) reform has so far resulted in a tax reduction of 267.9 billion yuan ($43.56 billion) for businesses, the State Administration of Taxation (SAT) said Thursday.

      China's VAT reform, which was implemented as part of China's structural tax cuts, has included replacing turnover tax with a VAT in the transportation industry, railway transport, postal services, telecommunications and some service sectors.

      VAT refers to a tax levied on the difference between a commodity's price before taxes and its production cost. Turnover tax refers to a levy on a business's gross revenues.

      The widening VAT reform has helped ease tax burdens for over 96 percent of affected taxpayers, according to the administration.

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