China plans value-added tax rate reduction for 2019

During the first day of the National People’s Congress, Chinese top leaders revealed that the country is planning to ease financial pressure on companies in the manufacturing sectors by cutting value-added tax by 3%. 

There has not been any confirmation on the implementation date; however, the reduction would send the new VAT rate to 13% from the current 16%.

Meanwhile, the VAT rate for companies in the construction and transportation would be reduced to 9% from 10%.