China's VAT reform creates inefficiencies and compliance costs, impacting national economy.
The paper examines how China changed its tax system from business tax to value-added tax to boost the economy. By studying past and current tax systems, the researchers found that China needs to improve its VAT system to align with global standards. The current tax system has created inefficiencies and increased costs for businesses. China's VAT system is now playing a big role in the country's economy and industries.