The implementation of value-added tax reform reduced enterprises’ tax burden, created a good taxation environment for fair competition while playing a significant role in cultivating new engines of growth, according to the third inspection by the State Council.
VAT reform has been carried out since May 1, 2016, and was concentrated on four pilot industries: architecture, real estate, finance and life service industries.
The reform achieved great results according to the official data released this year. From May to November last year, accumulated tax reductions in the four pilot industries reached 110.5 billion yuan, a 14.7 percent drop in tax burdens. And the figure for the whole year in 2016 is projected to surpass 500 billion yuan.
During the implementation, related regions and departments enhanced their coordination through system upgrades, better information connectivity and business process integration, in an effort to help tax payers understand the policy.
Meanwhile, tax departments also vigorously stepped up efforts to improve tax services via internet Plus, strengthening information sharing and collecting from tax payers.
To expand the reform, the Ministry of Finance established an information sharing platform to collect advice from other departments while following up on the progress made by individual enterprises and further streamlining administrative procedures for paying taxes.
In addition, the State Administration of Taxation vows to exert more efforts in appraisals and analysis of the overall performance of value-added tax reform, with the goal of ensuring its success.