The amount of Value added taxes and consumption are
growing from 15 RMB billion in 1991 to 615 RMB
billion in 2007 indicating a 41 times increase in
amount. Similarly, China’s export tax rebate/ refund
experienced a leap of 68.5 times to 527.3 RMB
billion from 25.4 RMB billion in 1991. A VAT of 17%
is applied to enterprises dealing with
import-export, production, distribution or retailing
activities. The amount of taxes signifies the amount
of goods China has imported over the years. Due to
the rapid modernization, China has imported large
amount of technologies and raw materials to aid in
the speedy development of the nation. Moreover,
since China’s accession to the World Trade
Organization, the government has always been
promoting international trade with explains the
rising amount of export tax rebates. Furthermore,
the amount of exports to the rest of the world has
increased extensively as well.
Below is the chart of China customs duties (value-added tax - VAT and consumption tax)
for imported goods from year 1991 - 2007:
Below is the chart China export tax rebate / refund and growth rate from
year 1987 - 2007:
Remarks: China started export tax rebate system since 1985.
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