China's SAT Unveils Strong Revenue Figures

by Mary Swire, for LawAndTax-News.com, Hong Kong

04 April 2008

China's tax revenue has increased by 23.8% annually between 2003 and 2007, the Deputy Head of the country's State Administration of Taxation (SAT), Qian Guanlin announced on Tuesday.

Figures from the SAT put the total figure for tax revenue in 2007 alone at a colossal 4.9 trillion yuan.

Several factors have contributed to this vast increase, with above-average stock market activity, booming business and major developments in industry being key factors, according to reports.

The authorities have expressed delight at the news, and have earmarked much of the surplus for expenditures in the country's public sector.

Reports earlier in the week suggested that some of the country's highest earners feel that they are shouldering too much of the tax burden.

According to a report from Forbes, China's richest woman, Zhang Yin, spoke at the inaugural meeting of the annual National People's Congress about her opinion on the taxation the country's richest face.

Zhang, who according to Forbes is worth an estimated USD3.4bn, argued that lower taxes on the rich would help to prevent attempts at tax evasion - and also prompt people to keep wealth in the country, instead of opting for offshore bank accounts.

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