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Economy · Policy
State Council Exempts Elderly Care Service from VAT for 6 Years
CKN
2019/06/05 04:24:36
2,077
China elderly, China aging population, China VAT

Jun 05, 2019 (China Knowledge) - China’s State Council announced that from 1 June 2019 to the end of 2025, the in-home care and assistance sector including elder care, childcare and housekeeping services will be exempted from value-added taxes.

According to a report from Chinese Academy of Labor and Social Security, the elderly care market in China has maintained an annual growth rate of more than 20% for past years. China’s “silver-hair industry” is expected to reach RMB 7.8 trln in market size by 2020, estimated by Zhongshang Industrial Research Institute. This is largely driven by demographic changes and China’s preferential policy.

The population size of elderly above 65-year-old amounts to 11.9% in 2018, clearly showing that China’s aging population is increasingly more severe.

Although a total of 250 million elderly people seems like a promising market, the shortage of nursing personnel for the elderly has reached 5 million. At present, the nursing personnel is mainly 40 to 50 year old, implying that the nursing sector fails to attract graduates and job seekers.

The elderly care market still holds immense potential value. Zhongshang Industrial foresees the private elderly care institutions will become key players in the future. New tech, including 5G also aids the healthcare industry to move towards “smart” healthcare integration.

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