英闻天下——515 China to Expand Value Added Tax Reform

 　　The State Council, or China's cabinet, has decided¹ to expand its value-added tax reform nationwide, covering more industries in order to further reduce tax burdens on businesses.

 

　　Experts say the expansion sends a signal that the government is speeding up fiscal² reform, which is intended to further boost business vitality³; help enterprises find new growth; and increase employment and residents' income to promote sustainable and healthy development.

 

　　Wang Xiao has more.

 

　　From August 1, the reform, replacing turnover⁴ tax with a value-added tax, or VAT⁵, in transport and some service sectors⁷, will spread to the whole country from the current 12 provinces and municipalities, according to a statement issued by the State Council. Film, radio and television industries will be included in the pilot reform.

 

　　Liu Shangxi, deputy director of the Research Institute for Fiscal Science under the Finance Ministry⁸, says the expansion is a vital step in fiscal reform.

 

　　"Originally, we implemented⁹ tax reform in certain areas, but now we are doing it according to industries. It's a big step forward. After the VAT reform is fully¹⁰ completed, turnover tax will be consigned¹¹ to history."

 

　　Turnover tax refers to a levy¹² on the gross revenue of a business. VAT refers to a tax levied¹³ on the difference between a commodity's price before taxes and its cost of production.

 

　　Zhu Qing, the chairman of the academic committee of the School of Finance, at the Renmin University of China, says the reform can help the company avoid duplicated taxation¹⁴ and benefit from a lower tax burden.

 

　　"This is not only a reform of the fiscal and taxation system, but an improvement in the circulation tax system. It also helps to further adjust the industrial structure and increase employment opportunities. Right now the central government is striving to develop the service sector⁶ in an effort to create more jobs."

 

　　China introduced the reform in Shanghai last year to avoid double taxation. It was later expanded to another 11 regions, including Beijing, Tianjin and Shenzhen.

 

　　By February 1, the program helped more than 1 million taxpayers¹⁵ save over 40 billion yuan in tax.

 

　　It is estimated that the widening reform will reduce tax burdens by about 120 billion yuan this year.

 

　　The government will extend the reform in due time to cover railway transport, postal¹⁶ services and telecommunications industries. It will strive to complete the reform by the end of 2015.

 

　　Liu Shangxi, deputy director of the Research Institute for Fiscal Science, says the reform has a long term positive impact.

 

　　"This reform can stabilize¹⁷ the Chinese economy and ensure continued growth. Continued growth relies heavily on a sound industrial structure. The tax reform can promote Industry convergence, refine the division of labor¹⁸, and further boost business quality and vitality; so it'll exert an overall impact for a long time."

 

　　The State Council says that the pilot sector will be expanded to cover rail transport, the postal service and telecommunications "when the time is right".

 

　　Some may think the pace of reform is not fast enough, but Liu Shangxi says a one-off change is not possible.

 

　　"The value-added tax reform is very complex especially in the service sector. To be on the safe side, the central government will expand the reform in several selected industries nationwide, because they have different challenges. For example, the building industry and financial sector are not ready for the reform yet."

 

　　Since turnover tax is a major source of tax revenue for local governments, the reform could re-adjust the revenue distribution between the central and local governments.

 

　　The impact could be as big as that of the tax reform in 1994, when central government withdrew most of the tax revenue ownership from the local authorities.

 

　　The central government will carry out further research in order to better allocate¹⁹ the division of fiscal revenues between central and local governments.

 

　　For CRI, I'm Wang Xiao.

1 decided   

adj.决定了的，坚决的；明显的，明确的

参考例句：

• This gave them a decided advantage over their opponents.这使他们比对手具有明显的优势。
• There is a decided difference between British and Chinese way of greeting.英国人和中国人打招呼的方式有很明显的区别。

2 fiscal   

adj.财政的，会计的，国库的，国库岁入的

参考例句：

• The increase of taxation is an important fiscal policy.增税是一项重要的财政政策。
• The government has two basic strategies of fiscal policy available.政府有两个可行的财政政策基本战略。

3 vitality   

n.活力，生命力，效力

参考例句：

• He came back from his holiday bursting with vitality and good health.他度假归来之后，身强体壮，充满活力。
• He is an ambitious young man full of enthusiasm and vitality.他是个充满热情与活力的有远大抱负的青年。

4 turnover   

n.人员流动率，人事变动率；营业额，成交量

参考例句：

• The store greatly reduced the prices to make a quick turnover.这家商店实行大减价以迅速周转资金。
• Our turnover actually increased last year.去年我们的营业额竟然增加了。

5 vat   

n.(=value added tax)增值税，大桶

参考例句：

• The office is asking for the vat papers.办事处要有关增值税的文件。
• His father emptied sacks of stale rye bread into the vat.他父亲把一袋袋发霉的黑面包倒进大桶里。

6 sector   

n.部门，部分；防御地段，防区；扇形

参考例句：

• The export sector will aid the economic recovery. 出口产业将促进经济复苏。
• The enemy have attacked the British sector.敌人已进攻英国防区。

7 sectors   

n.部门( sector的名词复数 )；领域；防御地区；扇形

参考例句：

• Berlin was divided into four sectors after the war. 战后柏林分成了4 个区。 来自《简明英汉词典》
• Industry and agriculture are the two important sectors of the national economy. 工业和农业是国民经济的两个重要部门。 来自《现代汉英综合大词典》

8 ministry   

n.(政府的)部；牧师

参考例句：

• They sent a deputation to the ministry to complain.他们派了一个代表团到部里投诉。
• We probed the Air Ministry statements.我们调查了空军部的记录。

9 implemented   

v.实现( implement的过去式和过去分词 )；执行；贯彻；使生效

参考例句：

• This agreement, if not implemented, is a mere scrap of paper. 这个协定如不执行只不过是一纸空文。 来自《现代汉英综合大词典》
• The economy is in danger of collapse unless far-reaching reforms are implemented. 如果不实施影响深远的改革，经济就面临崩溃的危险。 来自辞典例句

10 fully   

adv.完全地，全部地，彻底地；充分地

参考例句：

• The doctor asked me to breathe in,then to breathe out fully.医生让我先吸气，然后全部呼出。
• They soon became fully integrated into the local community.他们很快就完全融入了当地人的圈子。

11 consigned   

v.把…置于（令人不快的境地）( consign的过去式和过去分词 )；把…托付给；把…托人代售；丟弃

参考例句：

• I consigned her letter to the waste basket. 我把她的信丢进了废纸篓。
• The father consigned the child to his sister's care. 那位父亲把孩子托付给他妹妹照看。 来自《现代英汉综合大词典》

12 levy   

n.征收税或其他款项，征收额

参考例句：

• They levy a tax on him.他们向他征税。
• A direct food levy was imposed by the local government.地方政府征收了食品税。

13 levied   

征（兵）( levy的过去式和过去分词 )； 索取； 发动（战争）； 征税

参考例句：

• Taxes should be levied more on the rich than on the poor. 向富人征收的税应该比穷人的多。
• Heavy fines were levied on motoring offenders. 违规驾车者会遭到重罚。

14 taxation   

n.征税，税收，税金

参考例句：

• He made a number of simplifications in the taxation system.他在税制上作了一些简化。
• The increase of taxation is an important fiscal policy.增税是一项重要的财政政策。

15 taxpayers   

纳税人，纳税的机构( taxpayer的名词复数 )

参考例句：

• Finance for education comes from taxpayers. 教育经费来自纳税人。
• She was declaiming against the waste of the taxpayers' money. 她慷慨陈词猛烈抨击对纳税人金钱的浪费。

16 postal   

adj.邮政的，邮局的

参考例句：

• A postal network now covers the whole country.邮路遍及全国。
• Remember to use postal code.勿忘使用邮政编码。

17 stabilize   

vt.（使）稳定，使稳固，使稳定平衡；vi.稳定

参考例句：

• They are eager to stabilize currencies.他们急于稳定货币。
• His blood pressure tended to stabilize.他的血压趋向稳定。

18 labor   

n.劳动，努力，工作，劳工；分娩；vi.劳动，努力，苦干；vt.详细分析；麻烦

参考例句：

• We are never late in satisfying him for his labor.我们从不延误付给他劳动报酬。
• He was completely spent after two weeks of hard labor.艰苦劳动两周后，他已经疲惫不堪了。

19 allocate   

vt.分配，分派；把…拨给；把…划归

参考例句：

• You must allocate the money carefully.你们必须谨慎地分配钱。
• They will allocate fund for housing.他们将拨出经费建房。