中国为小企业削减增值税

China is trimming some of its value-added tax rates today. Analysts say the cuts from six or four percent to three percent are aimed at easing the financial burden on small companies and boosting the economy.

China lowered its value-added tax rates on some goods today. Companies once paying 4% or 6% in valued-added taxes on tap water, some construction materials, and auctions will now pay just three percent.

"The VAT cut will reduce the tax burden and stabilize the economic growth. Besides, it could also standardize tax system." Liu Shangxi, Deputy Director of Research Institute for Fiscal Science, MOF said.

Experts say that the tax cuts will save companies in the related sectors more than 10 billion yuan each year. But, they also point out that the VAT cut is needed in other sectors, too, because the recent value-added tax rates remain complex.

"I think so many VAT rate brackets exist now. The government needs to further cut the VAT rates and make it more simple." Liu said.

China started rolling out the VAT for some parts of the manufacturing sector in 1994, and gradually expanded its reach to the service sector in 2012.

Analysts say additional reductions in VAT rates are expected, particularly for larger companies.