China to improve VAT policies to reduce business burdens

BEIJING - China will continue to improve policies on the value-added tax to further relieve tax burdens on companies, according to an executive meeting of the State Council.

The government started to promote the VAT nationwide in May to replace old business tax, and 96.5 billion yuan ($14 billion) had been saved for companies by the end of October, said a statement released after the meeting chaired by Premier Li Keqiang on Wednesday.

In the next step, the government will closely track the progress, assess the effects, and address problems in pilot industries including finance and construction promptly.