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Central Government's Share in Stamp Tax Raised

The Chinese State Council has decided to raise the central government's share in stamp tax on securities trading, starting from October 1.

In a circular issued today, the State Council said the share of the central government will be raised from the current 88 percent to 97 percent in three years, reducing that for local governments to three percent.

The adjustment will be done in three steps, raising the central government's share to 91 percent by October 1, 94 percent by 2001 and 97 percent by 2002.

China currently imposes a four percent stamp tax on both sides of all securities trading.

The nation's expanding stock market has led to steady growth in the government's stamp tax revenue in the last few years.

In the first six months of this year, the government's stamp tax revenue soared to 147.7 percent to hit 26.8 billion yuan.

The State Council said the adjustment is aimed at strengthening the central government's capacity to adjust the macro-economy.

(People's Daily 09/30/2000)



In This Series

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