China cuts VAT from 16% to 13% 1 Apr 2019
- Mar 17, 2019 | Richard Asquith
China has confirmed it will reduce its standard VAT rate from 16% to 13% on 1 April 2019. This will largely benefit manufactures as well as consumers. The reduced VAT rate on Retail (on entertainment; hotel; restaurants; catering services; real estate and construction, telephony calls; postal; transport and logistics) will also be reduced from 10% to 9%. These measure will leave three rates in place: 13%; 9%; and 6%. It is likely that this will be reduced to two rates in the next year.
The move was announced at the start of this month, and is now confirmed to be implemented next month to help its manufacturers struggling with US tariffs, slowing global demand and a domestic debt overhang.