Tax Cut Resulting from "Replacing Business Tax with VAT" Totals 4.1 Billion Yuan within Three Years
Taxpayers in Suzhou Industrial Park have benefited a lot from structural tax reduction since the pilot scheme on business tax-to-VAT (value-added tax) was tested on October 1, 2012. In the past three years, the eligible taxpayers paid a total of 2.584 billion yuan VAT. As a result, the tax cut totaled 4.144 billion yuan, which saved pilot enterprises 1.36 billion yuan and down-stream enterprises 2.784 billion yuan.
Since the pilot scheme was implemented in 2012, the number of pilot enterprises for this scheme increased at the yearly rate of 18% from 5,621 in 2012 to 22,890 in October 2015. Of these enterprises, over 95% are engaged in modern service industry, showing a great effect of the scheme on service industry.
Next, pursuant to the decisions of its superior department, SIP Office of State Administration of Taxation will replace business tax with VAT in the remaining four industries--finance, construction, property and consumer services to further promote SIP's economic transformation and upgrading and bring more bonus of the tax reform to taxpayers.
December 31, 2015