VAT may not mean cheer to realtors

New system of taxation unlikely to ease burden, according to PwC expert

Replacing business tax with value-added tax may not exactly ease the tax burden of Chinese real estate companies, said a taxation expert from global consultancy firm PricewaterhouseCoopers.

China started a pilot program to replace business tax with VAT in early 2012 and so far the reform has expanded to many industries with some exceptions like real estate, finance and consumer services. The aim of the reform is to introduce the internationally prevalent VAT and reduce the tax burden for enterprises.