China Set Taxation Reform TargetsChina has set five targets to reform the taxation system in the near future, Finance Minister Xiang Huaicheng said on July 25.Xiang told a national work meeting on finance that China will gradually change the value-added tax into a tax levied on consumer goods instead of one levied on corporate revenues. The government will also expand the scope of consumption taxes to cover more goods and services. According to Xiang, China will get rid of the existing income tax rates for Chinese and foreign-funded enterprises and adopt a uniform tax rate system. China will gradually set up a revenue sharing system between central and local governments and phase out preferential tax rates adopted in certain regions to encourage the growth of certain professions and subsidize certain sectors. Xiang said that China will give full play to the role of personal income and heritage taxes to narrow the gap between the rich and the poor. A complete system of personal income taxes will be set up for this purpose. The country will also utilize tariff quotas and control of tariff payment to set up an open and standardized tariff system, Xiang said. The minister said that China will also sort out and regulate all kinds of preferential taxation policies. The Chinese government has formulated a plan of replacing arbitrary charges on motor vehicles and road transportation taxes. The plan has already been approved by the legislature and will be put into effect some time later, said Xiang. He said that the government has also started eliminating arbitrary charges in rural areas and readjusting taxes for farmers in some areas of the country. He said that the government is also preparing to push forward tax reforms in other sectors to promote the steady increase of fiscal revenues. |
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