Home>News Center>China
       
 

Debates to centre upon tax reforms
By Xu Binglan (China Daily)
Updated: 2005-03-09 02:18

Finance Minister Jin Renqing and the nation's taxation chief Xie Xuren should expect to be deluged with questions on reforming China's taxation system when they go before a press conference set for this afternoon.

Debates to centre upon tax reforms
Finance Minister Jin Renqing delivers a report at the plenary meeting of the NPC. [Newsphoto]
The questions will represent a continuation of a nationwide debate on the reforms that have gone on for years. The debate has grown louder in 2004 when financial authorities pushed hard for the adoption of a unified corporate income tax, which would mean higher rates for foreign-funded enterprises.

The debate did not generate results last year.

So it is just natural that tax reform is among the hottest of topics during the ongoing session of the National People's Congress (NPC) and the Chinese People's Political Consultative Conference (CPPCC).

Dozens of formal proposals and speeches have been centring on the topic. In addition to reforming the corporate income tax system, NPC deputies and CPPCC members have urged a more just personal tax system to be established, along with the enactment of a Taxation Code, in effect a basic law for taxation.

China's tax collectors now follow the 1991 Foreign-funded Enterprise and Foreign Enterprise Corporate Income Law, which stipulates a 15 per cent rate for such firms, and the 1993 Provisional Rules on Corporate Income Tax, which set a 33 per cent rate for enterprises funded wholly by domestic investors.

"The difference unfairly put domestic enterprises at a disadvantageous position in competing with foreign peers," said Xu Yulin, a CPPCC member and deputy director of the State Council's Legal Office.

In addition, tax experts said in an era when tax reductions are the trend, the 33 per cent should also be cut.

Xu said relevant departments have drafted a plan for unifying policy, with a single rate of around 25 per cent. That rate is at the middle-range among rates adopted by other countries.

The plan also proposes a transition period of between two or three years to help foreign-funded firms adjust to the new taxation level.

However, the plan has met with strong opposition from those who say a unified rate will dampen foreign investment growth. They worry that China will become less competitive when many Asian neighbours are trying harder to attract overseas investors.

David Dollar, director of the World Bank's China Programme, said the opponents' argument is not valid.

It is necessary and understandable to have preferential tax rate for foreign companies when market conditions are not very competitive, he said.

But the preferential rate for foreign companies has increasingly become inappropriate as China's investment climate has substantially improved.

"Increasingly it (the dual corporate income tax system) does not make sense," he said.

Taxation is not very important when attracting investors, who now pay more attention to the overall investment environment, which include infrastructure and government efficiency, he said.

Compared to neighbouring countries, China looks pretty good in this regard, he said.

Meanwhile, the focus of the public's debate is on the 800 yuan (US$96) threshold for personal income tax payments.

It was set in 1980, when the current Personal Income Tax Law was promulgated.

The economic situation is enormously different today than two decades ago. So all agree the threshold should be raised.

However, experts say reforming personal income taxes should include far more than raising that level.

What is more important is a better collection system and to have more deduction designs for such people as the disabled and those who fianncially support others to make the system promote social justice.

Personal tax collection now relied heavily on companies and institutions that have property accounting systems. Their treasury staff is commissioned to collect taxes.

But those who obtain part of their income from other channels in many cases high-income earners can cheat the system by avoiding taxes due.

"So we really need a system that can trace personal incomes," said Yang Zhigang, a senior fiscal science researcher at the Chinese Academy of Social Sciences.

Yang also said the country needs a basic law for taxation to clearly state the key principles in the sector.

Yang also said tax reforms should be carried when China's tax revenues grow rapidly because that will make the reforms easier to complete.



Fire kills 5 in Northeast China
Aerobatics show in Hunan
Final rehearsal
  Today's Top News     Top China News
 

Australia, US, Japan praise China for Asia engagement

 

   
 

Banker: China doing its best on flexible yuan

 

   
 

Hopes high for oil pipeline deal

 

   
 

Possibilities of bird flu outbreaks reduced

 

   
 

Milosevic buried after emotional farewell

 

   
 

China considers trade contracts in India

 

   
  EU likely to impose tax on imports of Chinese shoes
   
  Bankers confident about future growth
   
  Curtain to be raised on Year of Russia
   
  Coal output set to reach record high of 2.5b tons
   
  WTO: China should reconsider currency plan
   
  China: Military buildup 'transparent'
   
 
  Go to Another Section  
 
 
  Story Tools  
   
  Related Stories  
   
Customs ready for new tax levy
   
Tax return removal to hit aluminium sector
   
Wider luxury tax being considered
   
China to levy export tax on textile products
   
China to levy export tax on textile products
   
Beijing reaps US$9b in financial revenue
   
Income tax changes in pipeline
   
China's tax revenue up 25.7% in 2004
Manufacturers, Exporters, Wholesalers - Global trade starts here.
Advertisement
         
主站蜘蛛池模板: 国产男女猛视频在线观看| 被夫の上司持久侵犯奈奈美| 成人毛片18女人毛片免费| 免费一级片网站| 蜜桃成熟时2005| 国产成人精品福利网站人| 777成影片免费观看| 欧美www视频| 午夜精品久久久久久| 6080yy三级手机理论在线| 娇妻之欲海泛舟小强| 亚洲aⅴ男人的天堂在线观看| 深夜爽爽动态图无遮无挡| 国产人成777在线视频直播| 97国产在线视频公开免费| 少妇无码太爽了在线播放| 亚洲AV色香蕉一区二区三区蜜桃| 精精国产XXXX视频在线| 国产精品亚洲综合| 一级欧美一级日韩| 校花哭着扒开屁股浣肠于柔| 免费女人18毛片a级毛片视频| 色哟哟视频在线观看网站| 国产色视频一区| 中文日韩字幕一区在线观看| 欧美色欧美亚洲高清在线视频 | 一级一片一a一片| 极品少妇被啪到呻吟喷水 | 天天插天天狠天天透| 久久图库99图库| 最近更新在线中文字幕一页| 亚洲国产成人精品青青草原| 精品乱人伦一区二区| 国产av人人夜夜澡人人爽| 2019av在线视频| 宅男666在线永久免费观看| 中文字幕一二三四区| 我要看WWW免费看插插视频| 久久九九AV免费精品| 欧美牲交a欧美牲交aⅴ免费下载| 成人福利免费视频|