The Ministry of Finance and the State Taxation Administration have recently announced that, effective August 8, 2025, the collection of value-added tax (VAT) on interest income derived from newly issued treasury bonds, local government bonds, and financial bonds will be reinstated. The implementation of this measure will proceed in a phased manner, tied to the issuance dates of the bonds. Industry experts opine that the impact of this policy on the proprietary trading businesses of securities firms will be manageable. It is advisable to monitor the trend towards rebalancing stocks and bonds within these firms' proprietary trading portfolios, along with the performance and valuation recovery of the securities sector. This adjustment aims to refine the tax system, minimize disparities in tax burdens across different bond types, and foster the sound development of the bond market.