Small firms get a break on VAT

The Ministry of Finance announced on Wednesday that the value-added tax rate will be a flat 3 percent for many small businesses, effective July 1.

The 4 percent and 6 percent rates were eliminated to make the system fairer, the ministry said.

An executive meeting of the State Council, the cabinet, said last week the move is expected to reduce companies' tax burden by about 24 billion yuan ($3.84 billion) a year.