Tax breaks aimed at helping service sector

BEIJING - China will accelerate the reform of its tax system this year to shore up the transition of its economic growth pattern, said Xie Xuren, minister of finance, at a press conference during the National People's Congress (NPC) in Beijing on Monday.

The government will replace sales tax with value-added tax (VAT) for the service sector to unify tax implementation on goods and services and extend the consumption tax to high-energy-consuming products and high-end goods, said Xie.

In addition, it will also extend resources tax as well as property tax to a broader range, while reducing the tax burden on people with low incomes by raising the income tax threshold.