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E-mail Xinhua, December 25, 2024
Chinese lawmakers on Wednesday voted to adopt a law on value-added tax (VAT), the largest tax category in China, marking major progress in enforcing the principle of law-based taxation.
The law, passed at a session of the Standing Committee of the National People's Congress, the national legislature, will take effect on Jan. 1, 2026.
Currently, 14 out of the 18 tax categories in effect in China have already been legislated, covering the majority of tax revenue.
In recent years, China has continuously deepened the reform of the fiscal and tax system and promoted a series of VAT reforms, establishing a modern VAT system at an accelerated pace.
"The adoption of the law on value-added tax consolidates the achievements of VAT reform in recent years, which is conducive to enhancing the certainty of the tax system, stabilizing expectations and boosting confidence. It is an important achievement in deepening the reform of the fiscal and tax system," said Li Xuhong, vice president of the Beijing National Accounting Institute.
China's VAT revenue reached 6.12 trillion yuan (about 851.56 billion U.S. dollars) in the first 11 months of this year, accounting for about 37.8 percent of the country's total tax revenue.
Li said that a quicker pace of tax legislation is significant for optimizing the business environment and promoting the country's high-quality development.
