Value-added tax reforms to improve market vitality

Chinese authorities have unveiled detailed measures to implement value-added tax reform, a key step to boost market vitality and stabilize economic growth.

Starting April 1 this year, the 16 percent VAT rate that applies to manufacturing and other sectors will be lowered to 13 percent, while the rate for construction, transport and other sectors will be reduced from 10 percent to 9 percent, said a joint statement released on Thursday by the Ministry of Finance, State Taxation Administration and the General Administration of Customs.

The 10 percent deduction rate, which applies to buyers of agricultural goods, will be cut to 9 percent, said the statement.