In the next five years, China will make efforts to ensure coordinated
growth of revenue and national economy and improve the tax system,
said Jin Renqing, Commissioner of the State Administration of
Taxation, at a press conference sponsored by the State Council
Information Office today.
Jin called for
every effort to maintain that revenue goes up a bit faster
than GDP and to ensure that the amount of tax revenue will
enter a new high by 2005. The ratio of tax revenue to GDP
will be raised further and the portion of central revenue
in the total will also be raised.
To reach the targets,
he said, China will continue to improve its tax system in
following aspects:
First, the swap
of VAT from production to consumption type will be made at
an appropriate time.
Second, income
tax for domestic enterprises and enterprises with foreign
investment will be gradually consolidated and personal income
tax will be improved.
Third, part of
policies on excise and business tax will be adjusted.
Fourth, the pace
of local tax reform will be quickened. It includes the merge
and amending of vehicle and vessel usage tax, vehicle and
vessel usage license plate tax, real estate tax, urban real
estate tax and urban and township land use tax; the extending
of city maintenance and construction tax to enterprises with
foreign investment and foreign enterprises at an appropriate
time. The levy of land appreciation tax will be discontinued
at appropriate time and the slaughter tax will be eliminated
with the progression of fee-to-tax swap in the countryside
at an appropriate time.
Fifth, fee-to-tax
swap will be carried out step by step. The Tax on Vehicle
Purchase was introduced on 1 January 2001. Tax on Fuel will
come into force at a time determined by the State Council
in accordance with macro-economic trends.
Besides, according
to Jin, a modern tax administration system characterized by
information technology and professional competence will be
preliminarily set up. More efforts will be made to train tax
officers to improve the overall qualification of tax administrators'
team.
(CIIC by Feng Yikun
01/04/2001)
|