--FILE--Vista di un ramo di China Mobile a Shanghai in Cina, 7 aprile 2014. China Mobile, porcellane più grande gestore di telecomunicazioni per numero di utenti, può
--FILE--View of a branch of China Mobile in Shanghai, China, 7 April 2014. China Mobile, Chinas largest telecom carrier by number of users, may face a 9 percent year-on-year revenue drop in 2014 after value-added tax (VAT) is set to replace business tax in June, news portal caixin.com reported Sunday (4 May 2014). Hong Kong-listed China Mobile predicted that its profit in 2014 will be 20 billion yuan ($3.2 billion) less than in 2013, according to the report. China Mobile made 121.7 billion yuan profit in 2013, according to its 2013 earnings report. Meanwhile, investment in a 4G network also increased the companys costs this year, the report said. China Mobile said most of the companys costs cannot be deducted in the VAT system so short-term profit will be influenced by the pilot program, media reports said. However, the company believes the tax reform will help its long-term development and the company will be prepared for the new tax system, caixin.com reported. Zhang Bin, a deputy director at Chinese Academy of Social Sciences, was cited by CNR as saying that VAT may increase enterprises tax burden in the short term but VAT will greatly reduce tax burden when enterprises make large procurement orders.
