China’s planned replacement of business tax with value-added tax (VAT) in all sectors will establish it as a country with the most progressive VAT systems in the world, a leading accountant said on March 5.
“Business tax will be replaced with VAT in all sectors,” said Premier Li Keqiang in a government work report to the annual parliamentary session on March 5.
“Starting from May 1, the scope of work to pilot this measure will be extended to the construction, real estate, financial, and consumer service industries, and VAT deductions will cover all new immovable property of enterprises to ensure that the tax burdens on all industries are reduced,” said Premier Li at the fourth session of the 12th National People’s Congress.
“This is a significant and positive development as China will have one of the most progressive VAT systems in the world,” said Lachlan Wolfers, KPMG China head of…
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