VAT pilot program to expand

The State Council on Wednesday approved a plan to extend a value-added tax pilot program in Shanghai to eight provincial-level regions.

The program to replace the business tax with a VAT will extended to Beijing, Tianjin, Jiangsu, Zhejiang, Anhui, Fujian, Hubei and Guangdong, and the cities of Xiamen and Shenzhen, according to a statement of a State Council meeting presided over by Premier Wen Jiabao.

The plan will start on Aug 1 and be finished by the end of this year, the statement said.