BEIJING – China will maintain its existing business tax incentives and gradually digest changes caused by value added tax (VAT) reform, senior tax officials said on Friday.

The current reduction in the sales tax will continue after the levy is replaced by the VAT, Zheng Jianxin, deputy director of the Ministry of Finance's taxation department, said during an online interview with netizens on the central government's website.

For industries facing a heavier tax burden after the change, appropriate support will be given during the transition period, Zheng said.

Zheng answered questions concerning the recent pilot program to replace the sales tax with a VAT in selected industries, such as the transportation and service sectors, in Shanghai, which took effect on Jan 1, 2012.

The reform has also raised issues on the allocation of tax revenues because the VAT is collected through the State tax system, while most sales taxes are the province of local authorities.

To maintain the basic stability of the existing financial system, VAT revenue replacing the original sales tax revenue will still be controlled by local governments during the pilot period, Zheng said.

The pilot program also added two new tax rates to the current two rates as a "necessary transitional arrangement", but the number of rates will be reduced as the reform advances, he said.