Actual outgo under the new system may be lower, but clarity is yet to emerge

In late April, Greenland Group, one of the largest developers in China, forwarded its staff a plan, proposed by a consultancy, to cope with the new 11 percent value-added tax or VAT, which is higher than the 5 percent business tax.

The plan suggested that developers should try their best to have their projects taxed as per the pre-reform rate.