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Authorities should also learn from his spirit and work styles such as seeking truth from facts, daring to shoulder responsibility and his self-discipline, he said.

The VAT taxes only the value added at each link in the production chain. It is in line with international practices and more efficient as it avoids the double taxation of the BT regime, which is based on the gross revenue of a business, including the cost of input.

Inflation is also predicted to have picked up in March thanks to rising food price. UBS expected March CPI to rise 2.5 percent year on year, and raised its estimate of CPI to 1.9 percent for the whole year.

"This is associated with changes in our resources, sluggish external demand and business environment," said Li, citing the relocation of some foreign-funded manufacturers from China to other countries.

He revealed that China has come up with a proposal that foreign ministers of China and ASEAN nations issue a joint statement on full and effective implementation of the DOC in July.