Table 1 Examples of NVAT tax rate, where \(\%F\) is the variation in fundamentals between two trades, \(\%P\) is the percentage price variation between two profitable trades
From: Non-Value-Added Tax to improve market fairness and quality
Ratios | VRR (Value Recovery Ratio) | Tax Tier 1 | Tax Tier 2 | Tax Tier 3 | Tax Tier 4 |
|---|---|---|---|---|---|
Regime 1 | |||||
VRR | \(\%F/\%P\) | 0 to 0.10 | 0.11 to 0.66 | 0.67 to 1.00 | 1.01 to 19.0+ |
NVAT rate | 75% | 25% | 15% | 0% | |
Regime 2 | |||||
VRR | \(\%F/\%P\) | 0 to 0.05 | 0.06 to 0.25 | 0.26 to 2.00 | 2.01 to 19.0+ |
NVAT rate | 90% | 75% | 25% | 5% | |
Regime 3 | |||||
VRR | \(\%F/\%P\) | 0 to 0.05 | 0.06 to 0.25 | 0.26 to 2.00 | 2.01 to 19.0+ |
NVAT rate | 50% | 40% | 20% | 10% | |