China to extend VAT credit refunds to more sectors

China will extend value-added tax (VAT) credit refunds to more sectors, in the country's latest efforts to help enterprises navigate difficulties and stabilize the economy, according to an official statement released on Tuesday.

The statement, jointly issued by the Ministry of Finance and the State Taxation Administration, said firms in seven sectors, including wholesale and retail sales, agriculture, accommodation and catering, will enjoy the VAT credit refund policy starting July 1.

Newly-added VAT credits will be refunded in full on a monthly basis, while outstanding VAT credits will be refunded in one lump sum, according to the statement.

To facilitate the cash flow of enterprises and shore up the vitality of market entities, China has boosted its VAT credit refunds this year.

China's VAT credit refunds are expected to rise to 1.64 trillion yuan (about 246 billion U.S. dollars) this year, according to the Ministry of Finance earlier this month. From April to the end of May, the VAT credit refunds amounted to about 1.34 trillion yuan.