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China's VAT cut benefits import enterprises

Xinhua | Updated: 2019-05-19 21:54
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BEIJING - China's import enterprises saw their tax burden significantly reduced last month as the country lowered value-added tax (VAT) rates to further lighten the financial pressure of enterprises.

BP Zhuhai Chemical company in South China's Guangdong province saw its VAT reduced by 14.02 million yuan ($2.04 million) in April thanks to the tax reduction.

After reducing VAT rates, the financial burden of the company was reduced and more funds can be invested in research and development, said Yu Guoding, a manager responsible for the company's import and export businesses.

Starting April 1, taxpayers previously subject to the 16-percent VAT rate on their imported goods would enjoy a 13-percent VAT rate, while those who were subject to the 10-percent VAT rate would only need to pay 9 percent, according to the General Administration of Customs.

Customs data showed more than 1,500 import enterprises in Zhuhai and Zhongshan, Guangdong province, enjoyed lower VAT rates in April, with their VAT reduction totaling 190 million yuan.

In Northeast China's Liaoning province, more than 4,000 enterprises benefited from lower VAT rates, with VAT reduction amounting to 958 million yuan last month.

According to customs' earlier estimates, the total VAT reduction in imports is expected to reach around 225 billion yuan ($33.5 billion) this year, after the implementation of lower VAT rates on April 1.

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