The reform policy from business tax to value-added tax has been applied for one month since May 1st of this year, and the senior partner of M&T Law firm Wu Libin was interviewed by Accounting Messenger on the achievements and challenges of the policy. Mr. Wu believed the purpose of the policy is to expand the coverage of the policy. Besides, the burden for the value-added tax included in the real estate added could be deducted. Tax authorities had made great progress in tax collection and service during the implementation of the whole policy.
Even though the beneficial policy results, the problems can not be ignored. In Wu’s opinion, there are four problems over the current implementation of the policy. First, in some other industries, enterprises pay more tax than before. Second, there are numerous implementations as a result of the lack of the uniform provisions. Third, multiplex tax rates make tax management more complex. Last, procedures of reduction is cumbersome.
Mr. Wu suggested that it’s crucial to find, analyse and deal with the problems emerged in practice.