Central China’s Hunan province started a trial run of the nation’s new tax program to replace the business tax with a value-added tax on Aug 1, 2013. Since then, taxpayers under the scheme have experienced quite a relief in tax burdens. By the end of this July, the province saw a total tax reduction of 3.4 billion yuan ($554 million), Changsha Evening News reported citing the State Taxation Bureau of Hunan Province.

The pilot began last August, initially on the transport industry (excluding railway transport) and part of the modern service industry. The railage and post industry were included this January, and telecommunications in June. The number of taxpayers covered has increased from 19,096 to 54,204, a growth rate of 184 percent.

Since the launch of the new tax policy, the province has witnessed a drop of tax burdens both on taxpayers and tax agents. Compared with the business taxation era, 97 percent of taxpayers in pilot industries have lower or equal tax burdens, with an average decrease of around 44 percent. Meanwhile, the state taxation department has come up with 15 measures to optimize the taxation environment and promote tax work efficiency.