Toipic 1: China's value-added tax reform has reduced taxes of more than 40 billion yuan ($6.4 billion) for more than 1 million taxpayers in 12 pilot regions, according to the Finance Ministry.

The reform replaces turnover tax with a value-added duty in transport and some service sectors. The ministry said the reform had reduced the burden on lower taxpayers by an average of 40 percent.

The reform will be expanded to more areas, the ministry said.

Fanrenzijian: The reform is actually increasing the tax burden because there are very few conditions under which input tax (VAT paid by taxpayers who purchase goods or receive taxable services) can be deducted.

Zhihu: The best advantage of VAT reform is that it could be deducted by some input tax. So theoretically the more input tax receipts you can collect, the more tax can be deducted. But there are many conditions in which the input tax cannot be deducted. So will the tax decrease? It depends.

Yehai: Those who criticize the reform have a misperception about its objective. Its purpose is to avoid repeated taxation, not to reduce the tax burden.

Toipic 2: China on Friday approved the sale of HSBC's remaining $7.5 billion stake in Ping An Insurance to a group controlled by Charoen Pokphand Group (CP Group), giving the green light to the country's biggest inbound merger and acquisition deal.

CP Group, controlled by Thailand's billionaire Dhanin Chearavanont, bought HSBC's 15.6 percent stake in Ping An in December for $9.4 billion, agreeing to pay up front for around a fifth of that stake last month, with the rest, backed by China Development Bank, on approval by the China Insurance Regulatory Commission.

Yongsiwangye: This is why China Ping An's stock reached the limit on Friday.

Hugang: A decent exit for HSBC. Wondering if CP Group can profit from this.

Danny-huang: Why would China Development Bank offer such a huge loan to CP group?

Maidoustyle: It seems there is a lot of behind-the-scenes dealing going on. I am looking forward to seeing a follow-up story.

All information is from Sina Weibo

(China Daily 02/04/2013 page14)