China's State Administration of Taxation (SAT) has refuted
America's Forbes Magazine, for its ranking of China on its
Tax Misery Index. The magazine placed China's tax burden rank as
No.3 in the world, after France and Belgium, the People's
Daily reports.
Shu Qiming, a senior official with SAT, said the business
magazine's Tax Misery Index is more entertaining than
scientific.
China's tax burden is at a relatively low level compared with
other world countries, Shu said. In 2006, Shu states, China's tax
burden was at 18 percent. This figure is 12 percent lower than that
of industrialized nations, and 3 percent lower than developing
countries.
Shu also pointed out that there has no direct link yet been
found between people's tax burden and their feelings of happiness.
A heavy tax burden doesn't necessarily mean people living in that
particular country will feel unhappy. People's happiness is
actually closely linked to the level of social welfare they enjoy.
In this regard, people living in Scandinavian countries are the
best off. Thus, Forbes' Tax Misery Index is not an
objective or world recognized index.
Liu Heng, a professor at the Central University of Finance and
Economics, said that there are some differences between the tax
system of China and Western countries. The two tax systems are
hardly comparable, making the credibility of Forbes' index
doubtful.
Experts say that taking figures for granted, neglecting
world-wide tax system differences, and overlooking China's tax
concession policies, make the Forbes Tax Misery Index an
unscientific one.
(CRI May 27, 2007)?