China says telecom carriers will be included in trial VAT reform scheme from June 1
BEIJING, April 30
BEIJING, April 30 (Reuters) - China's telecom carriers will be included in a trial value-added tax reform scheme from June 1, the finance ministry said on its website on Wednesday.
China Mobile Ltd, China Unicom (Hong Kong) Ltd and China Telecom Corp will pay a basic tax rate of 11 percent and an additional value-added tax rate of 6 percent, said the finance ministry.
The new VAT trials are expected to have a negative impact on the carriers' profits, but could benefit consumers as the companies could offer free or discounted handsets with service contracts to avoid high taxation, analysts say. (Reporting by Paul Carsten; Editing by Miral Fahmy)
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