Higher taxes for Internet cafes
( 2003-08-07 11:46) (China Daily)
Now that Internet cafes in
Nanjing have been decreed entertainment establishments, they must pay higher
taxes than before, reports Jinling Evening News.
Internet bars used to pay 5 per cent sales tax when they were deemed service
businesses or considered part of the rental industry, leasing computer and
network time to customers surfing the Net.
But thanks to research revealing that most Internet surfers use the equipment
for recreational purposes, such as chatting with friends online or playing
games, authorities decided to change the business' status.
Internet cafes will now pay tax of 20 per cent on sales.
Together with the urban planning tax, education fees and a cultural
undertaking fee, the total tax rate will be 25.2 per cent.
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