Taxation System reform
China Newsweek July 2
In the latest round of institutional reform, the state taxation and local taxation bureaus have been merged, putting an end to the dual-track taxation system in place since 1994.
New taxation bureaus at the provincial level and below will be subject to the joint jurisdiction of the State Administration of Taxation and the provincial, regional or municipal governments. In addition to tax collection, they will also be responsible for processing social security payments such as medical insurance and pensions.the reform was carried out to solve problems that include the inefficiency of the current taxation system caused by overlapping functions of the state and local taxation bureaus. The new system aims to better meet the needs of China’s social and economic development.