增值税改革为企业减税

This latest tax reform centers around expansions in two areas really. The first is the expansion of the value-added tax system to four more sectors, namely construction, real estate, and financial and consumer services. 11 percent for construction and real estate; and six percent for financial and consumer services.

The second is to expand the scale of deductibles when calculating VAT, newly-acquired property assets will be counted as "deductibles" which will work in favor of enterprises, because it means a smaller value will be subject to the tax.

Reforms in VAT since 2012 have already reduced tax burdens for firms by more than 600 billion yuan. And through this latest move, the government hopes to cut taxes even more by more than half a trillion yuan alone in 2016.

It's hoped that replacing the business tax with the value-added tax in more sectors will be a boost for Chinese enterprises, modernize the country’s taxation system and to inject vitality into the Chinese economy which saw its slowest growth in quarter of a century last year.