China should prioritise firms over revenue amid decades-old tax bills saga: academic
- China’s tax authority had to deny it was launching a national investigation after firms were asked to pay tax bills dating back as far as the 1990s
A denial by China’s tax authority that it would launch a national investigation after several listed firms were asked to pay decades-old overdue taxes underscores public concerns over local government debt woes and weak confidence among businesses, analysts said.
Speculation subsequently arose that some authorities might be looking to punish companies for overdue tax or misconduct amid mounting fiscal stress.
Hua Sheng, a professor with Southeast University, said that the speculation reflected some concerns among businesses, especially in the private sector, over weakening local government finances.
“The current economic and employment pressures are very high. All policies in all regions should be highly consistent with the central government’s spirit,” Hua said on his Weibo social media account on Friday.
“We should not prioritise small profits over disruption of enterprises and markets.”