(Yicai Global)March 27 -- China will cut the value added tax rate for import goods to 13 percent from 16 percent and to 9 percent from 10 percent on April 1.

This will reduce the burden on importers by about CNY225 billion (USD33.5 billion), China's General Administration of Customs said on its official Tencent WeChat account today.

This VAT cut policy also applies to cross-border e-commerce transactions.

Buyers of less than CNY5,000 (USD745) in one transaction and those not paying over CNY26,000 over the full year do not have to pay tariffs. The VAT and consumption taxes exempt 70 percent of purchases by those above the quota. Based on the value of imports last year, the tax burden on consumers will fall by 1.35 billion yuan this year after the tax cuts kick in.

The new VAT rate will apply to those who make advance declarations, and on goods arriving in port on or after April 1, Customs alsoadvised.

China has adjusted the original VAT rates to 16 percent from 17 percent and to 10 percent from 11 percent on different categories since last May, reducing the total tax burden on both domestic and foreign firms by up to CNY400 billion.
Editor: Ben Armour