Chinese Lawmakers Urge Making of Tax Law

Some Chinese legislators December 23 called for the early enactment of a comprehensive tax law to suit the needs of the economic growth as well as align itself with the rules of the World Trade Organization (WTO).

The lawmakers from the Standing Committee of the National People's Congress (NPC) held Saturday a panel discussion on the draft amendment to the Law on the Administration of Tax Collection.

While extending appreciation concerning the draft amendment, some participants expressed their regret that there is not a comprehensive tax law covering every aspect of taxation.

Gu Shanqing, a member of the NPC Standing Committee, said that with numerous loopholes in tax collection, the NPC should enact a general tax law covering a wide range of aspects including the scope, standards, administration and supervision of taxation.

Gu Jinchi, vice chairman of the NPC Committee for Internal and Judicial Affairs, said with the country's pending accession to the WTO and the implementation of the strategy of Developing the West,China's tax rates should be readjusted to be in line with international rules.

Yu Xinglong, who is also a member of the NPC Standing Committee,said that some problems are present in the current system of

collecting value-added tax, and the western regions of China and ethnic minority areas where most of the resources are produced have an unfair status in collecting such taxes.

Yu cited some examples, one of which run as follows: According to current regulations on taxation, an enterprise group having its business covering several provinces, whose products are produced in the west, has to pay value-added tax to the eastern province where its general office is located.

The consequence is that the poor west regions will be poorer and the economic gap between east and west will be widened, which is sure to hinder the general development of the country.

Yu called on the country's lawmaking body to perfect laws regarding taxation to create a fair environment for the west.

The State Council may promulgate some regulations on dealing with problems emerging in taxation due to lack of a comprehensive tax law, Gu Jinchi said.






People's Daily Online --- http://english.peopledaily.com.cn/