Business / Economy

Provinces, cities to start tax reform soon

By Xie Yu in Shanghai ( Updated: 2012-06-11 17:23

About 10 provinces and cities in China will start tax reform soon, according to insiders from the nation’s tax authority, the Shanghai Securities News reported on June 11.

The Ministry of Finance and State Administration of Taxation has approved the application for tax reform from Anhui province. The province will replace turnover tax with value-added tax starting in October, according to a document released by the provincial taxation authority, the paper said.

Nine other regions - including Beijing, Jiangsu province and Hunan province - will also start replacing turnover tax with VAT in October.

The government is replacing turnover tax with VAT in the transport sector and some services sectors in Shanghai this year in order to avoid double taxation and to boost the development of the services industry.

The government has vowed to accelerate the pace of tax reform in order to accelerate economic transformation.

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