Shandong Defends "Steamed Bread Tax" as VAT
    2011-02-22 12:10:23     CRIENGLISH.com      Web Editor: Liu
 

The taxation administration of east China's Shandong Province defended that the "steamed bread tax" mentioned in recent reports is actually the Value-Added Tax (VAT), according to the 'Shandong Business Daily'.

The so-called "steamed bread tax" sparked controversy among netizens after a political advisor called for lowering the tax, which he claims currently is rated at 17 percent.

Pan Yaomin, a political advisor of Shandong Province and vice president of a flour company in Shandong Province that produces steamed bread, said the rate is too high and not only increases production costs but adds burden to people's daily consumption. He suggested the tax rate be reduced to 13 percent.

Taxation administration clarified that the tax is not exclusively imposed on steamed bread. It is actually the Value-Added Tax, a form of consumption tax.

Previous reports quote Pan as saying that people must pay a 0.2 yuan tax for each steamed bread, which usually costs about one yuan.

The administration said this is inaccurate, since consumers pay far less due to related favorable tax policies

According to the country's tax policy, 13 percent of the VAT can be deducted by steamed bread producers; therefore, consumers only pay a 4 percent tax.

This is the third time that Pan has submitted similar proposals to the province, all of which are concerned over the lowering of the tax rate on food.

Pan said the government has provided subsidies to many commodities to tame price hikes, but has ignored steamed bread, the food that many Chinese cannot live without. He said the tax cut is the most "scientific, direct and effective" way to solve the problem.

Share

               


CRIENGLISH.com claims the copyright of all material and information produced originally by our staff. No person, organization and/or company shall reproduce, disseminate or broadcast the content in any manner whatsoever without the express written permission of CRIENGLISH.com.

CRIENGLISH.com holds neither liability nor responsibility for materials attributed to any other source. Such information is provided as reportage and dissemination of information but does not necessarily reflect the opinion of or endorsement by CRI.

 
Editor's Pick more »

Chinese Press more »

Talk to CRI


M Zone
Tiger Wong Back with Her New Album 'Simple Or Not'
Taiwanese singing star Tiger Wong was back in Beijing on November 27 and 28 for two good reasons.
Duggy Day's Ski Trip to Wanlongbayi
On Sunday November 21st CRI's Duggy Day headed out to Wanlongbayi which is located west of Beijing.
More>>
News
China
World
Politics
Business
Sports
Showbiz
Sci-tech
Photo
Recommended
China
World
Sports
Showbiz
Travel
Video
C4
The Sound Stage
Showbiz
Travel
China Revealed
My Chinese Life
Travel
Destinations
Photo Gallery
Recommended
Learn Chinese
"In" Chinese
Chatting in Chinese
Pop Culture
Traditional Culture
Living Chinese
Chinese Studio
Chinese Class
Learn English
Special English
Pop Chart
Everyday English
Fabulous Snaps
CRI News
China.org.cn  | Xinhua  | People's Daily Online   |  CNTV.cn  | China Daily  |  Global Times  | China Job  |  China Tibet Online  | Taiwan.cn  | eBeijing  | Beijing Today  | China-Eurasia Expo  | APEC Yiwu Conference  | Chinese Embassy in S.Africa  | Chinese Embassy in Australia  | Chinese Embassy in NZ