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 China Experts Call to Change Tax on Interest |
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Endlessbook
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作者：Endlessbook 在 海归商务 发贴, 来自【海归网】 http://www.haiguinet.com
China Experts Call to Change Tax on Interest
Zhang Peisen, Taxation Research Institute senior researcher at the State Administration of Taxation said, "The 20 percent tax rate on earnings from interest reduces the purchasing power of medium and low income residents who must bear increasing inflationary pressure amid the country's fast growing economy." Many are still suffering from negative interest rates, despite the People's Bank of China, the central bank, raising the benchmark rate on one-year deposits by 0.27 percentage points late last month. According to the National Bureau of Statistics, China's consumer price index (CPI), policy-makers' key inflation gauge, rose 4.1 percent during the first 10 months of this year compared to 2003. But the benchmark rate on one-year deposits stands at 2.25 percent after the recent interest rate hike -- the first increase in nearly a decade. The country's CPI rose to 5.3 percent in July and August before slowing to 4.3 percent in October. "If China's CPI rose to more than 5 percent, which means the country might start to face high-level inflation, it would have a big impact on ordinary residents' consumption behavior," Zhang said. Higher prices for food and utilities such as water and natural gas have begun to put increasing pressure on medium and low-income families. China should adjust its tax policies on income from interest on personal savings to protect small and medium depositors, experts said recently.
作者：Endlessbook 在 海归商务 发贴, 来自【海归网】 http://www.haiguinet.com
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 China Experts Call to Change Tax on Interest -- Endlessbook - (1482 Byte) 2004-11-24 周三, 07:13 (1179 reads)
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