Taxes in effect by January

PUBLISHED : Wednesday, 15 December, 1993, 12:00am
UPDATED : Wednesday, 15 December, 1993, 12:00am
 

THE Chinese State Council has issued provisional regulations on value added taxes, consumption taxes and business taxes, as part of the country's programme to revamp the taxation system.


The provisional regulations will become effective from January 1, 1994.


Earlier, China also announced a personal income tax law, which will take effect on the same date.


Under the Provisional Regulations on Value-Added Taxes, the standard tax rate is 17 per cent, except for imports of some agricultural and energy products, which are subject to a 13 per cent tax rate.


To prevent tax evasion, tax collectors will check the sales figures provided by the taxpayers if they suspect the figures are unreasonably low.


Under the Provisional Regulations on Consumption Taxes, imported cigarettes will be subject to a 45 per cent tax rate, while the domestic product will be taxed at 40 per cent.


Alcohol and cosmetics will be taxed at more than 10 per cent, while cars face a tax of from three per cent to eight per cent.


The Provisional Regulations on Business Taxes are targeted at individuals or units offering labour services or being involved in intangible and fixed-asset transactions.


Operators of entertainment establishments, including dance halls, lounges, karaoke bars, golf clubs and other similar businesses, will be subject to five per cent to 20 per cent tax.


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