(Source: CGTN)

A year after the switch to VAT, China is expected to see government revenues decline by 680 billion yuan or close to 100 billion US dollars at the end of April.

China has slashed taxes to the tune of 1.2 trillion yuan since January 2012, when the country began its pilot VAT reform.

In addition to tax cuts, China's VAT reform has helped in the restructuring of the domestic economy.

It has also led to more innovation and entrepreneurship, and an acceleration in financial reform.

China's VAT reform affected nearly 16 million businesses and 10 million individual taxpayers, replacing business taxes worth 2 trillion yuan.