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Table 6 The desirable statutory VAT rates for future trial industries (%)

From: The effects of China’ s VAT enlargement reform on the income redistribution of urban households

Industry VAT rate Direct effective tax rate Tax-cut rate
   Before reform After reform  
Entertainment 17 10 7.5 25.2
Leasing (other than movable property) 13 5 3.2 35.9
Hoteling 13 5 4.1 17.8
Catering 13 5 3.6 28.1
Insurance 11 5 3 40.8
Tourism 13 5 3.9 22
Real estate 6 5 3.5 30
Environmental management 13 5 3.1 37.4
Public facilities management 13 5 2.8 44.7
Banking, securities, and other financial activities 6 5 3.8 23.6
Water conservancy management 11 5 4.7 5.3
Household services 11 5 4.1 17.8
Other services 13 5 3.5 30.7
Culture and arts (non-exempt item) 11 3 2.5 16.4
Sports 11 3 1.6 45.2
Construction 13 3 1.2 59.5
Education 0 0 0 -
Health 0 0 0 -
Social security 0 0 0 -
Social welfare 0 0 0 -
Agricultural services 0 0 0 -
Public management and social organizations 0 0 0 -
Culture and arts(exempt item) 0 0 0 -