Rail and the postal service will be added to the value-added tax reform program starting on Jan 1, according to a statement after Wednesday's State Council executive meeting, presided over by Premier Li Keqiang.

The move followed the decision to expand VAT reform nationwide from the transport sector and six service sectors since Aug 1. After the rail sector is added, all of China's transportation sectors will have been included in the VAT reform.

The pilot program to replace the business tax with a value-added tax is part of the government's efforts to invigorate the country's small- and medium-sized enterprises, most of which are privately owned, and upgrade the economic structure.