Center

Enforcement to boost tax revenue

(Xinhua)
Updated: 2006-10-17 09:22

China's tax revenues will increase by between 700 billion yuan and 800 billion yuan (89 billion to 101 billion U.S. dollars) this year, mainly due to stricter taxation enforcement, according to an expert with the Chinese Academy of Social Sciences (CASS).

"Improved taxation enforcement will contribute to about 70 percent of the revenue growth," said Gao Peiyong.

In the past few years, China's tax revenues have been increasing sharply due to better tax collection methods.

China collected about 3.09 trillion yuan (391 billion U.S. dollars) in taxes in 2005, excluding revenues from customs and farming, about 500 billion yuan (63 billion U.S. dollars) more than previous year.

Gao said in 1994, governments at various levels could only collect about 50 percent of all the taxes, while in 2003, they could collect more than 70 percent.

The tax revenue has played an important role in developing the country's infrastructure.

But Chinese people have begun to feel increasingly burdened by taxes and whether or not the government has been too heavy handed with its tax rates has become a hot topic.

Gao said when China launched its taxation system many years ago, it imposed high tax rates to compensate for rampant tax evasion.

"But now, as the country has improved its tax collection methods, it is time to reform the taxation system and reduce people's burden, he said.