Chinese mobile operators flag revenue impact following VAT increase to 9%

China Mobile, China Telecom and China Unicom have warned investors that their revenue will take a hit after Beijing raised value-added tax on basic telecom services to 9 percent. The VAT increase, effective 01 January 2025, applies to mobile, fixed-line and other core communications services, up from a previous preferential rate.

The operators said the higher tax will cut into their reported service revenue and profits, as they cannot fully pass the increase on to customers under current pricing and regulatory pressure. They noted that the change affects accounting figures rather than underlying user demand, but cautioned that year-on-year comparisons for 2025 will reflect the higher tax burden.