Business Tax and Value Added Tax

Abstract

To readers from other jurisdictions the idea of a separate tax for goods and services may seem strange, however it is important to remember the context in which the Chinese taxes were promulgated. Although the taxes were newly enacted they were influenced by those who had been educated in a highly socialist orthodoxy which less than 11 years previously had stressed distinguishing between consumer taxation, which was to be discouraged, and heavy industry taxation, which was to be encouraged.