Value-added tax (VAT) reform in some pilot regions will be expanded to more areas as burdens on Chinese business have been reduced, said the Ministry of Finance on February 1.

As of February 1, the reform, replacing the turnover tax with VAT in transport and some service sectors, has reduced taxes by over 40 billion yuan ($6.4 billion) for more than 1 million taxpayers in 12 pilot regions, said the ministry.

It added that the reform had reduced burdens on lower taxpayers by an average of 40 percent.

Turnover tax refers to a levy on the gross revenue of a business. VAT refers to a tax levied on the difference between a commodity's price before taxes and its cost of production.

China introduced the reform in Shanghai last year to avoid double taxation. The program was later expanded to another 11 regions, including Beijing, Tianjin and Shenzhen.