China will cut value-added tax rates as part of a tax reduction package amounting to 400 billion yuan ($63.58 billion) this year to drive high-quality development, a State Council executive meeting chaired by Premier Li Keqiang decided on Wednesday.
增值税（value-added tax，VAT）的主要特点是以销项税（output tax）减去进项税（input tax），让纳税人只为产品和服务的增值部分纳税。
The tax rate for manufacturing will be lowered from 17 percent to 16 percent, and for transportation, construction, basic telecommunications services and farm produce from 11 percent to 10 percent.
The meeting also decided to unify the standard for small-scale taxpayers, which raises the threshold of taxable annual sales volume for industrial and commercial enterprises from 500,000 yuan and 800,000 yuan, respectively, to 5 million yuan. Enterprises registered as general taxpayers will be allowed to switch their status to small-scale taxpayers within a given time.
As part of the tax cut package, eligible enterprises in advanced manufacturing, services and electric utilities shall receive a lump-sum refund for their initial input VAT payments yet to be deducted.
实施上述三项措施，全年将减轻市场主体税负超过4000亿元，内外资企业都将同等受益（this round of tax cuts will apply to all manufacturing companies, be they domestic companies, joint ventures or wholly foreign owned companies）。
减税降费 cut taxes and administrative fees
个税改革 reform of personal income tax
行政事业性收费 administrative fees
营改增 replace business tax with value-added tax
税级 tax brackets