China is set to replace turnover1 tax with value-added tax in medical-care and old-age care fields in a bid to boost consumption.
中国将在医疗护理与养老事业领域用增值税取代营业税以刺激消费。
VAT2 is tax
levied3 on the difference between the cost of production and the price of a commodity on the market.
It is favored partly because it can reduce double
taxation4.
The move aims to further simplify policies on pre-tax
deduction5 of enterprise income tax in order to ease
corporate6 tax burden.
The government document also pledges to improve consumer
subsidy8 policies via promoting a shift in subsidizing sellers to subsidizing consumers.