China refunds over 1.6 trillion yuan of VAT credit

China had refunded value-added tax (VAT) credit worth over 1.6 trillion yuan ($251 billion) by June 14 to free up much-needed cash for enterprises, official data showed.

Of the total, around 1.56 trillion yuan had been refunded since the country started implementing the policy on a larger scale on April 1, the data showed.

The State Taxation Administration and five other government organs said their crackdown on tax fraud has seen progress, and will impose stern penalties on any attempt to defraud the country of VAT credit refunds.

China will extend VAT credit refunds to seven more sectors including wholesale and retail sales, agriculture, accommodation and catering from July 1.