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Seven Aspects to Be Tapped on Taxation Reform

The taxation reform during next five-year will focus on boosting the modulation of economic structure and opening up to the outside, propelling the scientific advance in a bid to bring forth the solution of perfecting current taxation both on system and policy, put forward by Jinxin, commissioner of Finance and Economic Commission of National People's Congress or president of China Society of Taxation and some experts on a symposium of national revenue theory recently. They suggested that taxation reform be proceeded at following aspects.

I. Activating the investment demand to change the productive value-added tax into a consumption type. Meanwhile issue on administration of value-added tax levying should be further studied.

II. Moderately expanding the levying scope of value-added tax to be in line with the value-added transformation. It is to be considered to incorporate traffic, construction and estate sales into the tax levying rage.

III. Defining legal persons as the taxpayers on the basis of consolidating the income tax of both domestic and foreign enterprises.

IV. Perfecting the individual income tax.

V. Imposing the social security tax and regulating the social security system.

VI. Stepping up the tax-charge reform.

VII. Disseminate the tax collecting rights and gradually forming a consummate local tax system.

(People's Daily 11/29/2000)

In This Series

Securities Tax Revenues to Set Record This Year

Six Financial Policies for Next Year

Value Added Tax Revamp Vital for Fair Play

Taxation System to Witness Great Change

References

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