Li Keqiang (Prime Minister) held an executive meeting of the State Council, which decided to expand the scope of pilot cities where business tax will be replaced with VAT for levying. The main conclusions were that:

  1. the VAT reform currently taking place in nine pilot areas will be extended to all of China as from August 1, 2013; and
  2. VAT, instead of business tax, will apply to railway transportation, postal services and telecommunication services.

Date: April 10, 2013.