22 February 2019

VAT scheme for telcos could begin in April, paper says

The telecom industry could see business tax being replaced with a value-added tax regime as soon as April this year, Economic Information Daily reported Monday, citing what it said were authoritative sources. Under the new scheme, the three telecom operators could end up paying 11 percent value-added tax, against the current three percent business tax, it said. That could cut their profits by 10 to 20 percent in the short term but could spur refinements to their business model over the long run, such as reducing handset subsidies, industry sources were quoted as saying.

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