Source: CCTV.com

11-12-2008 09:38

The Ministry of Finance and the State Administration of Taxation have released the details of the country's VAT reforms, saying that cars and real estate will not be included in the reforms.

The Ministry of Finance and the State Administration of  Taxation have released the details of the country's VAT  reforms, saying that cars and real estate will not be  included in the reforms.

The new rules will allow taxpayers to deduct the value-added tax paid on purchases of new equipment from other taxes owed, starting January first. Meanwhile fixed assets that can be deducted include big machinery and other equipment related to their production.

However cars, motorcycles and real estate have been excluded from the new system. It's estimated that the reforms will mean 120 billion yuan less in taxes.

Editor:Xiong Qu