Telecoms start VAT trial run

China's telecommunications sector moved to a value added tax plan from its 3 percent turnover tax. The effort that began Sunday is a part of a tax reform move to reduce businesses' tax burdens.

Different telecom services now belong to different tax brackets. For example, the telephone services sector saw its VAT rise to 11 percent while the tax rate for digital data transfers and Internet service is 6 percent.

Experts say that as 4G technology rolls out, businesses' equipment purchases for 4G expansion will result in large tax credits.