VAT cut will provide huge boost to economy

Various sectors to benefit from tax reduction that will also result in more foreign investment to tackle global downward pressure

Starting next month, China's massive reduction of value-added tax will take effect, with manufacturing sector VAT dropping by 3 percentage points from the current 16 percent, to lower burdens on enterprises and boost the real economy.

Transport and other sectors will pay 9 percent in VAT, instead of the current 10 percent. The measures will tackle downward economic pressure, help attract more foreign investment and upgrade the economy, experts and company management said.