More Chinese cities will implement a trial tax reform by replacing business tax with lower value-added tax, including Beijing, Tianjin, Chongqing, Xiamen and Shenzhen, the Shanghai Securities News reported Tuesday, citing unnamed sources.
Five provinces, including Jiangsu, Hunan, Hainan, Anhui and Fujian will also implement the tax reform, the paper added.
The plan for the expansion will be announced at the end of May or June, and the trial should be rolled out by the second half of the year, the paper said.
Chinese Premier Wen Jiabao said Sunday that government will speed up the expansion of the tax reform pilot begun in Shanghai, amid other remarks highlighting the importance of adjusting policies to avoid an economic slowdown.
Under the program, certain industries in Shanghai had their business tax replaced with a lower value-added tax starting this year, as part of the country's broader tax reforms and efforts to selectively boost certain sectors without loosening overall macroeconomic policy too much.
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More Chinese cities will implement a trial tax reform by replacing business tax with lower value-added tax, including Beijing, Tianjin, Chongqing, Xiamen and Shenzhen, the Shanghai Securities News reported Tuesday, citing unnamed sources.
