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Airport Construction Tax May Be Abolished Next Year
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Source within the Civil Aviation Administration of China or CAAC has disclosed that the domestic airport construction tax might be abolished next year, the Beijing News reported Friday.

The paper said CAAC is discussing this matter with the National Development and Reform Commission and the Ministry of Finance.

Eighteen government charges, including the airport construction tax were to be terminated by the end of 2005, according to a document issued by the Ministry of Finance. The State Council, however, approved that the abolition of seventeen of these including the airport construction tax be postponed to the end of 2006.

The airport construction tax is one of CAAC's main revenue sources. A CAAC official told the Beijing News that they are presently exploring some specific reform measures with the National Development Reform Commission.

"Maybe a change can be made in the way of collecting the tax, or maybe the tax for domestic passengers can be abolished entirely", the CAAC official said "We cannot be sure yet what measures will be adopted." 
(CRI April 7, 2006)

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