Toys   Apparel   Mould
Food   Electron  Ceramic
Metal  Automotive
You are not logged. UserName: Password: Verifiy Code: Click on the Refresh code validation Free Registration!
Current position :HomePage >> 网站公告 >> China ready to scrap or cut interest tax on bank savings

China ready to scrap or cut interest tax on bank savings  Release time :2007-6-30 16:20:00
  Adjust font size :Small Large

BEIJING -- The draft bill that would authorize the State Council to suspend or cut the longstanding tax on interest earned on personal savings is likely to be adopted by China s national legislature when its Standing Committee ends a weeklong session on Friday.

Yang Jingyu, chairman of the Law Committee of the National People s Congress (NPC), said on Thursday that the majority of the150 lawmakers had agreed with the proposed authorization and suggested the bill be put to a vote in this legislative session.

Yang said the draft amendment to the income tax law said: "The imposure, suspension or reduction of interest tax on bank savings, as well as specific methods thereon, are subject to the decision of the State Council."

The existing provision adopted in August 1999 reads: "The timing and method of taxing interest earned on savings accounts are dependent on the State Council." Later that year, China began to levy a 20 percent tax on interest earned on personal savings.

By the end of 2006, the tax had generated 214.6 billion yuan (about 28 billion U.S. dollars).

The benchmark one-year deposits carry an interest rate of 3.06 percent. However, given the 20 percent interest tax, the actual yield is just 2.45 percent.

That return is below the inflation rate as measured by the consumer price index, which hit a two-year high of 3.4 percent after rising three percent in April and 3.3 percent in March.

In recent months, China has seen large sums of money flow from deposit accounts into stock trading accounts.

Central bank statistics showed that China s household deposits posted the largest monthly drop in May, decreasing 278.4 billion yuan.

A bull stock market and soaring housing prices had made many people realize that the yield on bank deposits was simply too low, said Huang Fuguang, a finance professor at Tianjin-based Nankai University.

Favorites][Return Home][Go Top][Windows Close
Related information
·Trading starts
·Bankruptcy law
·China to boost
·Volkswagen sees
·The 3rd Session
·Polluters will
·HK seen as idea
·The 2nd Round o
·International s
About Us | Agreement | Advertising | Links | FeedBack | Favorites | Set Home

The high Chinese online software development co,Ltd.
Copyright ©2001-2008 btobcn.Net. All rights reserved.
France Telecom :00 33 4 72332718