China's $1 Trillion Tax Law Clears Final Hurdle

China's State Council has approved the rules for its new value-added tax (VAT) law. This is the last major step before the law takes effect on January 1, 2025. The VAT is China's single largest source of tax revenue. The new law formally establishes the current tax system, which brings in over 7 trillion yuan (nearly $1 trillion) annually. The detailed implementation regulations were published for public feedback in August. The cabinet's approval on Friday means the rules are now finalized. This move provides long-term certainty for businesses. It governs how the tax is applied to goods, services, and imports across the world's second-largest economy.