China plans to levy a value-added tax on all industries in 2016, Reuters reported, citing state media. State news agency Xinhua cited Finance Minister Lou Jiwei as saying that the value-added tax will replace an existing business tax in four final remaining sectors: Finance, property, construction and consumer services. The move comes amid a push by Beijing to reform China’s tax system; since a value-added tax targets the difference between sales price minus cost of materials and other taxable inputs and is collected at the point of sale, it should be theoretically easier to collect than individual or corporate taxes.
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