Premier of the State Council of the PRC assigned to extend reforms to replace the turnover tax with value added tax

Almaty. January 26. Silkroadnews - Premier Li Keqiang called to extend the reforms further to replace sales tax with value added tax (VAT) in 2016, to reduce the burden on enterprises and contribute to growth and improvement of the industry, reports the newspaper “People’s Daily”.  
“VAT reform is an important part of the financial and tax reforms in China. VAT reform pilot scheme yielded positive results, and its extension to all the industries will reduce the tax burden on businesses, help to raise the industry and bring a stimulating effect on consumption,” - a statement sounded at the end of the symposium, chaired by Li Keqiang on January 22.
The pilot scheme of VAT has been tested in 2012 and got expanded gradually. This year the turnover tax will be replaced by the VAT in the remaining four sectors - finance, construction, real estate and consumer services.
To promote the reform to replace the turnover tax with value added tax it is necessary to motivate the market players, the statement said. The government may experience some loss of fiscal revenues in the short-term, yet it will be balanced with the growth in the future.