BEIJING – As China reduced its value-added tax (VAT) to further alleviate corporate financial pressures, Chinese importers experienced a significant reduction in tax burden last month.
Due to China’s VAT cut, BP Zhuhai Chemical Company in South China reduced its value-added tax by RMB 14.02 million (US$ 2.04 million) in April.
Yu Guoding, the manager in charge of the company’s import and export business, said that after reducing the VAT rate, the company’s financial burden will be reduced and more funds can be invested in research and development.
From April 1st, taxpayers who previously imposed a 16% VAT rate on their imported goods will enjoy a 13% VAT rate, while those who pay a 10% VAT rate will only pay a 9% tax rate. General Administration of Customs.
According to customs data, more than 1,500 importers in Zhuhai and Zhongshan, Guangdong Province, have lower VAT rates in April, and the total value-added tax exemption is 190 million yuan.
In Liaoning Province in northeastern China, more than 4,000 companies benefited from a lower VAT rate, with VAT reductions of 958 million yuan last month.
According to previous estimates by the Customs, after the implementation of the lower VAT rate on April 1, the total value-added tax on imports this year is expected to reach approximately 225 billion yuan ($33.5 billion).
