Next step on VAT to reduce levies starting on May 1, premier says

China will cut value-added tax rates as part of a tax reduction package amounting to 400 billion yuan ($63.58 billion) this year to drive high-quality development, a State Council executive meeting chaired by Premier Li Keqiang decided on Wednesday.

The tax rate for manufacturing will be lowered from 17 percent to 16 percent, and for transportation, construction, basic telecommunications services and farm produce from 11 percent to 10 percent.

Li said the reform is a major step in China's tax regime reform.