China to gradually implement consumption tax reform

31/7/2024 12:39

        China will gradually implement consumption tax reform through different items and standardise management of local governments' non-tax revenues, Vice Finance Minister Wang Dongwei said at a press conference in Beijing on Wednesday.
        
        Local administrations will gradually be allowed to retain more of the consumption tax, which is currently collected by the central government and accounts for almost a tenth of China's total tax revenues, according to a Communist Party agenda-setting meeting this month known as a plenum.
        
        China currently collects consumption taxes based on the value of a good when it is produced but there are plans to widen the assessment of the tax to include the value at its consumption.
        
        Wang said in his remarks to media outlining government steps to enact policy made at the plenum that "we are considering moving the consumption tax collection stage backwards".