China to cut VAT tax rates for manufacturing and other sectors
China will lower the value-added tax rate on the manufacturing, transportation, construction, telecommunication and agricultural sectors from May 1, Reuters with reference to the state media reported, citing a meeting of the State Council, or cabinet, on Wednesday.
The cuts are expected to save 240 billion yuan in taxes this year, said the report.
Tax cuts for the manufacturing and transportation sector were flagged by Premier Li Keqiang earlier in the month but no date for implementation was given at the time.
The tax rate for the manufacturing sector will be cut to 16 percent from 17 percent, while the rate for the other industries will be lowered to 10 percent from 11 percent.