China's State Administration of Taxation (SAT) has refuted America's Forbes Magazine, for its ranking of China on its Tax Misery Index. The magazine placed China's tax burden rank as No.3 in the world, after France and Belgium, the People's Daily reports.
Shu Qiming, a senior official with SAT, said the business magazine's Tax Misery Index is more entertaining than scientific.
China's tax burden is at a relatively low level compared with other world countries, Shu said. In 2006, Shu states, China's tax burden was at 18 percent. This figure is 12 percent lower than that of industrialized nations, and 3 percent lower than developing countries.
Shu also pointed out that there has no direct link yet been found between people's tax burden and their feelings of happiness. A heavy tax burden doesn't necessarily mean people living in that particular country will feel unhappy. People's happiness is actually closely linked to the level of social welfare they enjoy. In this regard, people living in Scandinavian countries are the best off. Thus, Forbes' Tax Misery Index is not an objective or world recognized index.
Liu Heng, a professor at the Central University of Finance and Economics, said that there are some differences between the tax system of China and Western countries. The two tax systems are hardly comparable, making the credibility of Forbes' index doubtful.
Experts say that taking figures for granted, neglecting world-wide tax system differences, and overlooking China's tax concession policies, make the Forbes Tax Misery Index an unscientific one.
(CRI May 27, 2007)
