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Benefits seen for all sectors

(China Daily)
Updated: 2007-03-09 07:24

Huang Huahua, governor of South China's Guangdong Province:

The new tax law will benefit the province in the long term. It will help us to update our economic structure and improve the level of foreign investment in the country by granting some preferential terms to high-tech industries. It will also lead the direction of industrial development in the province.

Cheng Mingming, chairman of board of the foreign-funded Shanghai Cheng Mingming Cosmetics Co Ltd:

The tax will improve the market transparency, as there won't be many complicated differentiations in counting income tax. But I think the 25 percent income tax is a little bit high for foreign companies.

Mei Xinyu, researcher from the Chinese Academy of International Trade and Economic Cooperation attached to the Ministry of Commerce:

The existing tax preferential treatment has caused many problems. It, for example, has caused capital outflows, which then come back in the disguise of foreign capital to take advantage of the tax breaks.

(China Daily 03/09/2007 page6)