China pledged to expand a reform program to replace business tax with a value-added equivalent, in place across pilot sectors since August 1, in the hope of further easing the burden on smaller businesses.

The expanded pilot scheme will include enterprises in the radio, film and television industries, alongside those operating in transport and some modern service sectors, said Premier Li Keqiang.

As a vital step in fiscal reform, value-added tax has achieved remarkable results in easing the burden on businesses and promoting economic transformation, Li added.

The nationwide expansion will eliminate policy differences between pilot and non-pilot regions. The program will help cut 120 billion yuan ($19.37 billion) in levies for companies in 2013.

"The earlier-than-expected expansion sends a signal that the government is speeding up fiscal reform," said Liu Shangxi, Deputy Director of the Research Institute for Fiscal Science under the Finance Ministry.

The value-added tax reform was first introduced in Shanghai in January 2012 and was later expanded to other cities and provinces.