1.28 million taxpayers in Jiangsu will benefit from the value-added tax cut that is to be effective on April 1st, the provincial taxation authority said on Saturday.
According to the New Deal, the VAT rate in the manufacturing industry will fall from 16% to 13% from April 1. The VAT rate in the transportation and construction industries will fall from 10% to 9%.
According to preliminary estimates by the Provincial Taxation Bureau, 1.28 million taxpayers in the province will enjoy the benefits. The 3% tax cut, which is unprecedented, will make manufacturing the biggest beneficiary of this round of tax reduction
At the same time, in order to ensure that the tax burden is reduced, domestic passenger transport service is included in the deduction scope. Tax payers in the postal, telecommunications, modern service and life service industry will be entitled to tax reduction plus 10% to offset the taxable amount.
The State Council made decisions on March 23 to specify the support measures for value-added tax reduction, extend some tax-preferential policies, and give tax incentives to third-party enterprises engaged in poverty alleviation donations and pollution prevention and control.
The Government Work Report this year set out the plan for larger-scale tax cuts, including lowering the VAT rate in manufacturing and other industries from 16 to 13 percent, and the VAT rate in transportation, construction and other industries from 10 to 9 percent.
Staring on April 1, the range eligible for VAT deduction will be expanded and will cover passenger transportation services. Taxpayers whose main businesses are postal services, telecommunications, modern services and consumer services will enjoy a 10 percent additional input VAT deduction before the end of 2021.
Increase in overpaid VAT following this round of tax cuts will be refunded through due procedures.
(Source：ourjiangsu.com)
