On 5 March 2016, China's Premier Li Keqiang announced that the remaining sectors still subject to business tax will be transitioned to value added tax (VAT) effective 1 May 2016. The announcement was made during China's annual National People's Congress, and followed by comments from Minister of Finance Lou Jiwei that the 1 May deadline would be met as long as no unforeseen complications arise.
The transition from business tax to VAT began in 2012 as a pilot program, with most sectors transi…