VAT rates for pesticides and fertilizers will be reduced from 11% to 10%

On March 28th, Premier Li Keqiang presided over the executive meeting of the State Council to determine the measures for deepening the reform of the value-added tax and further reduce the tax burden on market participants.

The value-added tax rate for goods such as pesticides and chemical fertilizers will be reduced from 11% to 10%, and the VAT rate for land, water and other transportation services will also be reduced to 10% from May 1st. In addition, the annual sales standards for small-scale taxpayers in industrial enterprises and commercial enterprises have been raised from the previous RMB 500,000 and 800,000 to RMB 5 million.

It was pointed out in the meeting that the move is to further improve the tax system, support the development of manufacturing, small and micro enterprises and other real economies, and continue to reduce the burden on the market participants.

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