On February 14, the National Academy of Economic Strategy (NAES) at the Chinese Academy of Social Sciences released a report entitled “Deepening the Implementation of Comprehensive Tax Reform”. Gao Peiyong, the director of NAES, commented that China has entered stage where the tax burden per capita reached 10,000 yuan, which is considered high.
The data for 2013 shows that China’s public finance revenues reached 12.9 trillion yuan, which means the macro tax per capita is close to 10,000. However, the “public revenue” is only the index with the smallest caliber among various indices used for calculating the “macro tax burden”.
A key issue for tax reform is how to stimulate enthusiasm among both central and local government, as well as promoting the tax sharing system. According to the report, a possible solution to achieve the balance is to move the nation’s governance towards a polycentric model.
Links and sources
21st Century Business Herald (21世纪经济报道): 2013人均宏观税负近万元