VAT reform set to go nationwide in August

In 2012, the VAT reform program helped cut 42.6 billion yuan in taxes for companies in the pilot areas, according to the Ministry of Finance.

Also at the Wednesday meeting, Li said the pilot sector will be expanded to rail transport, the postal service and telecommunications "when the time is right".

Liu said the expansion is likely to take place as early as the beginning of next year. "Some may think the pace of reform is not fast enough, but we should not forget that these steps are being taken amid an economic slowdown and lower fiscal revenue."

Premier Li said with the pilot expansion, the central government will study to better allocate the division of fiscal revenue between central and local governments.