From Chinese Press

Tax rates very high

(China Daily)
Updated: 2010-05-06 08:51
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Rising taxes and the not-so-rising personal incomes of the people pose a potential threat to sustainable development, says an article in Guangzhou Daily. Excerpts:

Data for the first quarter of this year, released by the Ministry of Finance, show the national tax revenue and personal income tax revenue registered a year-on-year growth of 35.9 percent and 21.3 percent.

In sharp contrast, the income levels of urban as well as rural residents rose only by 7.5 percent and 9.2 percent in the first quarter.

This shows an abnormal wealth distribution. In fact, this has been twisting the national economy for the last 10 years during which people's income increased 1.6 times, while the government's fiscal income rose six times.

We have the least reason to feel happy for the so-called "recovery growth" of tax revenue. Rather, we must act now to carry forward the income distribution reform, reduce administrative cost and increase expenditure on social welfare.

(China Daily 05/06/2010 page9)