Q:
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What are the features of China taxation system?
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A:
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The tax structure of China is focus on economy efficiency, income re-distribution will not be beneficial. Coincidently, the current taxation system of China, is the taxation system which is highly recommended by a lot of economist in United State of America. We (China taxation system) are encouraged to increase direct tax while they are encouraged to decrease direct tax and increase indirect tax (for example: sales and service tax). Of course, the condition of People Republic of China and United Stated of America is very different. The saving rate of USA is low and China is relatively high; Income tax in USA is high however the consumption tax of China is relatively high.
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Q:
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What is the current condition of China taxation system?
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A:
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The volume of China taxation robust today. In 1994, the evolutions of the tax law and regulations had set up the base of the whole taxation structure. Value added tax, sales and service tax, consumption tax and corporate tax is one of the main sources of income of the government of China. The fiscal income of China is close to United State of America an even higher than some of the developed countries in Europe, Singapore, Thailand and a lot of other economy entities in Asia.
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Q:
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What are the features of fiscal expenditure system in China?
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A:
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The fiscal expenditure system is mainly focus on developing the economy of China. During the re-formation of new China, we found that our people is lack of lifestyle while fully focus on the development of economy. Recently, the budget for economy development is decreasing, however, it is still very high comparing to a lot of countries.
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Q:
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What is the disadvantage of the fiscal expenditure system in China?
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A:
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The less investment of community services, education, and medical facilities. In pass few years, our government is focus on the development of economy while other segment such as communities, entertainment, cultural, and religions was slightly neglected. Second, the imbalance distribution of public resources. Our public resources were not distributed equally between city and rural areas and different kind of peoples. For example, in the process of civilization, we did not solve the problem of people shifting from village to city. The family members of a lot of grassroot labour was left at their hometown while their parent is earning money in the city.
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Q:
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What is the advantage of the fiscal expenditure system in China?
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A:
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The fiscal expenditure system of China is mainly focus on economy development but not re-distribution of profits. This will lead to the fast growing of economy and investment rate in China.
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