China to replace business tax with VAT

China will expand tax reforms to replace a business tax with a value-added tax (VAT) this year, state radio quoted Premier Li Keqiang as saying, in the latest step to bolster slowing growth. Top leaders have already pledged to cut taxes and expand the government budget deficit this year to support economic growth, which slowed to its lowest level in 25 years in 2015.
"We will fully expand the tax reforms to help substantially reduce corporate tax burdens," Li was quoted as saying.
The step would lead to large-scale tax cuts for companies, Li was quoted as saying.
The tax reforms would help the economy withstand the downward pressure and support high-end service sectors, he added.