China to expand VAT reform

China's State Council has decided to expand its value-added tax reform. From August the 1st, the reform, replacing turnover tax with a value-added duty in transport and some service sectors, will spread to the whole country.

Film, radio and television industries will also be added. It is estimated that the widening of the reform will reduce tax burdens by about 120 billion yuan this year. The government plans to eventually extend the reform to include railway transport, postal services and telecommunications industries.