China Continues Modernisation Of Tax Regime, Scraps Farm Tax Early
Speaking last week, China's Finance Minister, Jin Renqing revealed that the
government would be abolishing the unpopular farm tax ahead of schedule, as
part of a program of tax and economic reforms in China. The 2,000 year-old tax has traditionally been disliked by the country's rural
community because it is levied at a flat rate, whilst taxes imposed on city-dwellers
are imposed in relation to profit levels. Observers have suggested that the tax has contributed to the growing income
gap between the country and the city, and have attributed various cases of civil
unrest in recent years to anger over the the rural tax. These factors, in conjunction with the negligible amount of revenue raised
by the levy, have reportedly contributed to its early demise. .
|
|
IMPORTANT NOTICE: TAX-NEWS.COM has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments. All materials on this site copyright TAX-NEWS.COM 1999 to 2007. Contact us for further information.