From Chinese Press
How to reduce tax burden
(China Daily)
Updated: 2010-06-07 08:17
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Since the tax burden of ordinary people and enterprises in competitive industries is relatively heavy - second in the world, according to Forbes - tax reform should be aimed at reducing people's burden and channeling some of the profits back to the people, says as article in China Youth Daily. Excerpts:
People are always sensitive to any tax reform because it involves their personal interests. Without doubt, property tax will increase the burden of houseowners and tenants, while resources tax and environment tax will ultimately be transferred to consumers.
Revamping the individual income tax system is the only way people's tax burden can be reduced, because the existing standard deduction is very low and levied on taxable income obtained by individuals rather than their families. What makes things worse is local governments' impulse to increase their revenue. In fact, local governments, taking the property tax in Chongqing and Shanghai as an example, are eager to impose more taxes.
So in order to bring the role of tax in income readjustment into full play, the income distribution pattern between the government and the people should be changed. And the government should implement more tax cut policies and return some of its profits to the people.
(China Daily 06/07/2010 page9)