Chinese Premier Li Keqiang has called for efforts to expand VAT reform in 2016 to reduce the burden on enterprises and help industrial upgrades.

"VAT reform is an important part of China's fiscal and tax reform. Pilot VAT reform has achieved positive results and expanding it across all industries will reduce tax burdens on enterprises, boost the upgrade of industry and stimulate consumption," according to a statement issued on Monday following a symposium chaired by Premier Li on Friday.

A pilot VAT scheme was tested in 2012 and gradually expanded. This year, China will replace business tax with VAT in the remaining four industries -- finance, construction, property and consumer services, the Ministry of Finance said in December.

To make headway in VAT reform, it is necessary to motivate market entities, the statement said. The government may face some losses in fiscal revenue, but this will be balanced by future growth, the statement added.

Careful planning is necessary to ensure a smooth implementation of the VAT reform, the statement said, adding a step-by-step manner can avoid adverse effects on the stable running of the economy. Endi