Rumor: China to Start Telecom VAT Reform Trials in July
Sohu IT, 3/14/13
China Business News reported recently that value added tax (VAT) reform trials for China's telecom industry could start as soon as July 1. An industry insider said, however, that any official announcement of expanded VAT trials would await confirmation from the State Council, and that the situation could change before the announcement.
At the government's year-end finance work meeting in late 2012, China's Ministry of Finance said that it would expand its VAT trials this year, both in terms of geographic scope and the scope of trial industries, to include China's posts and telecommunications industries.
VAT trials first began in Shanghai in January 2012, covering the local transportation and shipping industry and six other modern service industries. Approval was granted in August 2012 for VAT trials to expand to ten other provinces and municipalities, including Beijing and Tianjin. The Ministry of Finance reports total 2012 tax reductions of over RMB 40 bln in VAT trial areas, with RMB 27 bln in reduced taxes in Shanghai alone.
Keywords: government policy tax telecom Ministry of Finance State Council
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