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Chinese official says nation will collaborate on tax protocol

By PAUL WELITZKIN?in New York | China Daily USA | Updated: 2018-02-15 23:54
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China's commissioner for the State Administration of Taxation told a global conference at the United Nations on Wednesday that China is willing to collaborate on developing an international tax protocol and cooperate on tax administration.

Wang Jun addressed the Platform for Collaboration on Tax, a joint effort by the International Monetary Fund, the Organization for Economic Cooperation and Development, United Nations and the World Bank Group that held its?first global conference on "Taxation and Sustainable Development Goals" at the UN.

Wang cited a Chinese saying – "Common effort and wisdom make success"-- in addressing a global conference on taxation and sustainable development goals. With that in mind, Wang unveiled goals that he said his agency will pursue to align tax policy to promote sustainable development in China.

He said the SAT is willing to work with international officials on taxes and sustainable development goals (SDGs), collaborate on developing an international tax protocol for SDGs, and cooperate on tax administration.

"This year SAT will host six training sessions on taxes for international officials,"said Wang. "We will also host a conference on the exchange of tax information and in May SAT will host a Belt-and-Road tax conference."

China's Belt-and-Road Initiative is an attempt to link with Asian and European nations via a network of railways, roads, pipelines, and utility grids.

"The people are yearning for reaching sustainable development goals,"Wang said. He noted that SDGs are also a top priority of the Chinese government. The 19th?National?Congress?of the?Communist Party?of?China held last October and President Xi Jinping have emphasized SDGs.

Against that backdrop Wang said his agency is working to develop what he called a "green"tax system in China that covers resources and consumption. Not only does the tax system seek to promote the development of an eco-friendly economy, it also seeks to encourage innovation and a streamlined approach to government, he said.

Wang discussed the country's reform of its?value-added tax (VAT)?system that sought to eliminate double taxation in many industries and sectors.

"Since 2012 China's business tax reform has reduced taxes by $313 billion,"said Wang. Many industries such as the country's railway companies have used the tax savings to fund development of high-speed rail projects, he noted.

China's tax reform has also benefitted SDGs, Wang said, noting that his agency has implemented tax incentives to revitalize rural areas by encouraging investment in agriculture and infrastructure.

China's Belt-and-Road Initiative has encouraged greater cooperation with other nations. "We have signed 54 tax agreements with Belt-and-Road countries,"Wang said.

paulwelitzkin@chinadailyusa.com

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