A scheme replacing the business tax with value-added tax could be rolled out for the financial and insurance industries this year, the Economic Information Daily reported Thursday, citing government sources. Preparations are being carried out, with the People’s Bank of China having requested the four major state-owned banks to submit research reports and forecasts on the new tax system. The insurance industry has reportedly submitted a comprehensive proposal on the VAT scheme to the China Insurance Regulatory Commission. The transport and certain modern service industries have adopted the system since 2013, with the railway and postal service sectors joining the scheme on Jan. 1 this year. The central government plans to roll out the tax scheme nationwide within the 12th Five-Year Plan (2011-2015) period, with the telecommunication, building and construction, financial and social service industries waiting in line for the shift, the report said.
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