David Cruickshank, a committee member of the World Economic Forum (WEF) and Deloitte’s global chairman, spoke highly of China’s VAT reform during his recent visit to the nation.
He said that China, with its large population and GDP volume, has made great breakthroughs by replacing the business tax with a value-added tax. It sets an example for other countries.
“The move to fully implement VAT from last May has injected more vitality into Chinese enterprises, playing a key role in facilitating their involvement in global economic activities,” he added.
He also pointed out that VAT’s pre-tax deduction system constitutes mutual constraints between upstream and downstream economic entities, to make them abide by tax regulations, thereby developing a well-managed tax regime.
Judging from the achievements and positive responses, he expressed his confidence in the reform to overcome any obstacles in the future.