China’s Central Committee Considers Overhaul of VAT System Amid Falling Property Taxes

• China’s rulers are considering VAT overhaul as property taxes decrease
• Third plenary in current cycle next month will focus on economic reforms
• Government revenues fell 2.3% at the start of the year
• Choices for Central Committee include raising standard rate, consolidating reduced rates, extending tax base, and more
• Need to raise consumption taxes due to property boom burst
• Reforms of income taxes may also be considered, but are politically difficult

Source: vatcalc.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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