CaiShui [2001] No.21 March 7, 2001

The state and local taxation bureaus of various provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State plan:

Ratified by the State Council, the issue on adjusting the sales tax rate of finance and insurance is notified as follows:

The sales tax rate of finance and insurance will be reduced 1 per cent each year and it takes three years to reduce the rate from 8% to5%, which means the rate is 7% from January 1, 2001 to December 31, 2001, the rate is 6% from January 1, 2002 to December 31, 2002, and 5% from January 1, 2003 to December 31, 2003. The reduced revenue of sales tax resulting from the reduced rate of it should be central fiscal revenue levied by the taxation authorities directly subordinate to the regional state taxation bureaus.

Promulgated by The Ministry of Finance, the State Administration of Taxation on 2001-3-7