China's value-added tax reform is expected to be implemented across all industries next year.
Business taxes in four sectors - finance, construction, property and consumer services - will be replaced by VAT.
Business tax refers to a levy on the gross revenue of a business, while VAT refers to a tax levied on the difference between a commodity's price before taxes and its cost of production.
One objective of VAT reform is to alleviate the corporate tax burden.
It's been predicted that once all industries shift to VAT in 2016, the overall tax savings nationally will be more than 900 billion yuan or 0.4 percent of GDP.
In addition, VAT can promote the development of the service sector and the upgrading of the manufacturing sector.