UPDATE: China to implement VAT rate reduction by April

Premier Li Keqiang on Friday, 15 March 2019 announced that China would start implementing the value-added tax (VAT) rate reduction on 1 April 2019 as a measure to support the country’s slowing economy.

The VAT rate for the manufacturing sector will be reduced to 13 percent from the current 16 percent. This is the second time the country cutting VAT rate for the manufacturing sector. In May 2018, the rate was cut 1 percent to 16 percent.

The transport and construction sectors will enjoy a 1 percent reduction in VAT rate this time, sending the latest rate to 9 percent from 10 percent.