Authorities respond to tax concerns

Departments and ministries under the State Council, China's Cabinet, responded to a series of public concerns in the past week, mainly concerning the corporate tax burden and prevention of urban flooding.

Officials of the Ministry of Finance responded to media reports concerning the taxation system. They pointed out that tax reform is designed to reduce enterprises' tax burden and particularly support the development of high-tech enterprises as well as enterprises in the economically less vibrant western regions.

Since 2008, China has launched a series of corporate tax reforms, which has reduced the statutory tax rate from33 percent to the international average of 25 percent. It has eliminated differentiated tax treatment between foreign and domestic enterprises, and provided several preferential tax rates to high-tech enterprises, qualified small and micro-sized enterprises as well as enterprises in the western regions.