When goods meet services … finally

The merging of VAT and Business Tax to produce a unified goods and services tax (GST) type of indirect tax is necessary for the healthy development of the Chinese economy. However, formidable obstacles lie in the path of reform, the greatest of which is that the central/local government revenue sharing system would be upset. Dealing with such obstacles will be a delicate balancing act, explain Lilly Li and Anthony Chan of KPMG