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 | - |