From Chinese Press

Let taxpayers enjoy their rights

(China Daily)
Updated: 2011-03-01 09:18

A political adviser to Shandong province has proposed lowering the so-called steamed bread tax, which local taxation authorities say is value-added tax. But people, defending their rights as taxpayers, do not accept the official clarification, says an article in Beijing News. Excerpts:

The "steamed bread tax" rate is 17 percent and had gone largely unnoticed until the political adviser's proposal.

For years, few Chinese taxpayers have questioned why they have to pay tax, what kind of taxes they are burdened with and how the tax revenue earned by the government is spent. Although tax liability entails certain rights, many taxpayers do not even know what their rights are.

Thanks to the ill-informed taxpayers, tax authorities have not bothered to notify the public of the taxes they actually pay.

Take value-added tax for instance. The authorities impose tax on any value that is added to goods or services during the process of production, distribution or delivery.

The value-added tax is coupled with price, which makes it seem like sales tax to consumers.

While buying certain products or availing of some services, customers in general have no idea how much they have paid as value-added tax, which actually comprises a huge proportion of their annual tax payment.

The tax authorities have the responsibility to notify taxpayers of every tax they pay, including value-added tax.

The government, on its part, should take measures to make its expenditure more transparent and allow the public to know how, why and on what the government revenue is spent.