China is studying the possibility of having one VAT rate, according to tax administration head Wang Jun, who was cited by Xinhua.
The current system has 4 VAT tax brackets and China announced today that a pilot program to have the VAT replace the business tax will be implemented nationally.
China has a jumbled tax system so clarity would be positive. I don’t see any details but it could have implications for inflation and growth.
The central bank also said on Tuesday it will broaden the yuan’s trading range.
