Tax fog boggles property developers

Actual outgo under the new system may be lower, but clarity is yet to emerge

In late April, Greenland Group, one of the largest developers in China, forwarded its staff a plan, proposed by a consultancy, to cope with the new 11 percent value-added tax or VAT, which is higher than the 5 percent business tax.

The plan suggested that developers should try their best to have their projects taxed as per the pre-reform rate.