Business tax in China will be replaced by value added tax, or VAT. The move is seen as a concrete step in deepening fiscal and taxation reform. Finance Vice Minister Shi Yaobin told reporters preliminary measures have resulted in tax savings of over 641 billion yuan, or 99 billion US dollars. He says it's still not confirmed whether the central and local government's shares of VAT will be adjusted to 50:50 from 75:25.
