Tax reform to help firms tide over crisis

The value-added tax (VAT) reform will help domestic enterprises tide over the effects of the global financial crisis, a senior official said yesterday.

Exports have suffered because of the financial turmoil, which started in the US, Zheng Jianxin, deputy director general of the Ministry of Finance's taxation department, said. But the government is trying to work out measures to reduce its impact.

"The VAT reform will encourage investment in and technological upgrading of Chinese companies, boost domestic demand, improve competitive strength of companies and play a positive role in helping firms tackle the financial crisis," Zheng said during an online interview with netizens on the government's website, www.gov.cn.