Fri­day

Septem­ber 9

China Daily (USA) - - NEWS CAPSULE -

Govern­ment con­sid­ers con­sumer tax re­form

China may over­haul its con­sump­tion tax and many ex­perts are rec­om­mend­ing tax cuts on cheaper cos­met­ics, while rais­ing taxes on lux­u­ries such as to­bacco and golf.

The Min­istry of Fi­nance has sub­mit­ted a tax over­haul pro­posal to the State Coun­cil, China’s cab­i­net, sources said. The pro­posal would be an­other step to­ward a broader tax code over­haul fol­low­ing re­forms of the value-added tax in May.

The over­haul may have widerang­ing im­pli­ca­tions, from spurring bud­get-con­scious smok­ers to kick the habit or mak­ing it less de­sir­able to take a trip to South Korea to load up on beauty prod­ucts.

It also could tip the bal­ance of govern­ment fi­nances: Whether to give a greater share of con­sumer tax rev­enue to pro­vin­cial gov­ern­ments in­stead of the cen­tral govern­ment is also be­ing de­bated at the State Coun­cil.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.