The following is the evolution source of the 1% tax rate
1. According to State Taxation Administration of The People's Republic of China's announcement on the value-added tax rate of some corn deep-processed products, State Taxation Administration of The People's Republic of China Announcement No.11 of 212
is a unified policy and fair tax burden. Now the value-added tax rate of some corn deep-processed products is announced as follows:
according to the current value-added tax policy, corn germ belongs to the scope of primary agricultural products in the Notes on Taxation Scope of Agricultural Products, and the value-added tax rate of 13% is applicable; Corn syrup, corn husk, corn fiber (also known as sprayed corn husk) and corn gluten meal do not belong to primary agricultural products, nor do they belong to the scope of duty-free feed in the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on the Exemption of Feed Products from VAT (Caishui [21] No.121), and the VAT rate of 17% is applicable. ?
this announcement shall come into force as of may 1, 212. ?
it is hereby announced.
State Taxation Administration of The People's Republic of China
March 27th, 212
II. According to the Notice of the Ministry of Finance State Taxation Administration of The People's Republic of China on Relevant Policies for Degenerate VAT Rates (Caishui [217] No.37): "1. Since July 1st, 217, the VAT rate structure will be degenerated, and the 13% VAT rate will be cancelled. Taxpayers sell or import agricultural products (including grain), tap water, heating, liquefied petroleum gas, natural gas, edible vegetable oil, air conditioning, hot water, gas, coal products for residents, edible salt, agricultural machinery, feed, pesticides, agricultural films, fertilizers, biogas, dimethyl ether, books, newspapers, magazines, audio-visual products and electronic publications at a tax rate of 11%. See Annex 1 of this notice for the specific scope of the above goods.
3. According to the Notice of the Ministry of Finance and the State Administration of Taxation on Adjusting the VAT Rate (Caishui [218] No.32), "1. Taxpayers engaged in VAT taxable sales or imported goods, and the original tax rates were 17% and 11%, the tax rates were adjusted to 16% and 1% respectively.