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Mainland Taxpayers Say Chinese Tax System Favours The Rich

by Mary Swire, Tax-News.com, Hong Kong

19 August 2002

Figures published in the Worker's Daily have led taxpayers on the Chinese mainland to complain that the country's tax system is weighted in favour of the wealthy and famous.

The newspaper, published by the All China Federation of Trade Unions, revealed last week that more than 60% of personal income tax collected is paid by workers earning average wages, while high income earners contribute less than 10%, despite holding some 80% of the 8.3 trillion yuan (HK$7.82 trillion) currently saved in the nation's banks.

The newspaper revealed that Chinese tax dodgers are estimated to cost the economy around 100 billion yuan in uncollected revenue every year, as 15% of the government's total tax revenue comes from personal income tax.

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