Xinhuanet | By: Xiang Bo | August 29, 2017:
XI’AN, Aug. 29 (Xinhua) — A resort hotel in Yangling, an agricultural high-tech demonstration zone in northwest China’s Shaanxi Province, has seen its tax drop by 670,000 yuan (about 101,200 U.S. dollars) since May last year. The company’s revenue was 20 million yuan during the same period.
The same was also seen in Yuchai Group, a leading machine manufacturer in south China’s Guangxi Zhuang Autonomous Region, whose tax burden was cut by 70 million yuan last year.
All these changes would not take place had a nationwide value-added tax reform not been implemented in May last year. The reform replaced all business taxes with value-added tax, the most significant tax overhaul in China for two decades.
Across the country, this aggressive tax cut has saved 1.6 trillion yuan of taxes for businesses since it was first introduced in 2012. From May 2016 to June 2017, taxes were reduced by over 850 billion yuan.
Benefiting from the VAT reform, Yuchai Group was able to invest more in R&D and further explore the overseas market.
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