China`s VAT reform restructures economy, encourages entrepreneurship
(WorldNews Business)

BEIJING - China`s value-added tax (VAT) reform, a key part of supply-side economic reform, has given impetus to economic growth and boosted entrepreneurship. The VAT reform, which replaced all business taxes with value-added tax, was first piloted in Shanghai in 2012. It was expanded nationwide from May 1, 2016, with construction, real estate, financial and consumer services sectors included in the VAT regime. Tangible goods have been subject to VAT for some time, but the levy on services was imposed on the value of a firm`s sales. Such a crude system resulted in a tax on tax. VAT avoids this, as...