China’s growth puts wide-ranging tax reform high on Beijing's agenda

China may deploy higher taxes on fossil fuels to reduce carbon emissions (photo: dpa)
China may deploy higher taxes on fossil fuels to reduce carbon emissions (photo: dpa)

Communist China had no individual income tax before 1980 because personal earnings were so small. Today, in an era of high economic growth, its tax system is comparable with those in developed economies. But reform is inevitable - individual income tax comprised only 5.8 per cent of total revenue in 2012. Beijing must decide how to apply taxes not only to individuals but to business, foreign investors and fossil fuels, writes GIS guest expert Ken Davies.

China’s growth puts wide-ranging tax reform high on Beijing's agenda

CHINA’s taxation system has developed rapidly in the past three and a half decades of transition from state-controlled to market economy, like the nation’...

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