China's finance ministry on Friday made the prediction that its tax reform will save more than 470 billion yuan in 2016. 

"We have cut 371.7 billion yuan of tax revenues in the first ten months of this year. That means we are on track to save 470 billion yuan in total this year. If we plus the tax breaks for city regeneration and education, we will cut 500 billion yuan in total this year," said Shi Yaobin, Chinese Vice Finance Minister.

China replaced the business tax with value added tax. The ministry has been gradually expanding the industries covered in the program. China's State-Council said Thursday that the tax reform will reduce the burden for companies by 500 billion yuan or 73 billion US dollars by the end of this year.

The VAT program is designed to specifically support growth in the service industry, an area that China sees GDP growth potential.