For more on this, we are joined by Zhao Zhongxiu, Vice President of the University of International Business and Economics.

Q1. The promise is that the new VAT system will only CUT tax money across all sectors. But because the VAT rate is usually higher than the original business tax rate, could companies end up paying more?  Do you see any challenges in keeping that promise?

Q2. The government hopes to cut enterprises a break with fewer taxes. How effective will the new taxation system be?