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)
