No plan on capital gains tax yet, says report

    By Dong Zhixin (chinadaily.com.cn)
    Updated: 2007-06-07 10:15


    A woman looks at stock prices on an electronic board in Beijing June 5,2007. [Reuters]

    China has no plans yet to levy a capital gains tax, reports a major securities newspaper Thursday, citing official sources.

    Speculation about a possible capital gains tax following a stamp tax hike sent China's benchmark stock index down more than 20 percent in less than a week.

    "Those who think the capital gains tax can be announced anytime, just like the adjustment of the stamp tax, know nothing about the law and the speculation is groundless," said an unidentified official quoted by Shanghai Securities News.

    Special coverage:
    Stock Market

    Video:
    China Raises stamp tax

    Related readings:
    Chinese stocks post slight gains
    Stocks rebound in wild fluctuation

    Stocks plunge in panic selling
    Stocks rebound from sharp fall
    Stocks plummet nearly 7 percent

    The source went on to say that a State Council rule in 1988 authorizes the government to adjust the stamp duty whenever needed. However, capital gains tax is a new category of duty and the government currently has no legal basis for collection, according to the source.

    If regulators want to set up the capital gains tax, they must go through related legislation procedures, from putting forward motions, to getting approval by the country's top legislature, the source noted. "That will take a long time and the process is highly transparent."

    "As far as I know, there are no such plans," the source said.

    The newspaper also got confirmation from other officials, but did not provide their names or departments.

    Capital gains tax, in a general sense, covers not only the stock market, but also the real estate sector, officials said, and so it has widespread economic implications.

    "The conditions for collecting the duty are not ripe yet and the tax can in no way be legislated easily," added the official.

    In fact, State Administration of Taxation officials have rejected the capital gains tax speculation, but investors would not believe them as the Ministry of Finance denied a stamp tax hike several days before announcing it.

    China's stock market became extremely volatile after the stamp duty increase as investors went on panic selling, fearful of further cooling measures, including capital gains tax.

    The Shanghai Composite Index tumbled 6.5 percent the day after the duty hike before rebounding slightly on May 31. The index fell again June 1 before plunging 8.3 percent on Monday, the second sharpest fall in a decade. On Tuesday, it plummeted as much as seven percent before picking up gradually to close in positive territory.

    Highlighting the extent to which investors' confidence has been affected, the number of new A-share accounts opened on Tuesday hit a two-month low of 162,00, statistics from the China Securities Depositary and Clearing Corporation showed. That compared with a record 385,000 new accounts opened on May 28, the day before the stamp tax hike.



    Top China News  
    Today's Top News  
    Most Commented/Read Stories in 48 Hours
    蜜芽亚洲av无码精品色午夜| 久久久久久久人妻无码中文字幕爆| 久久精品中文字幕一区| 欧美日韩毛片熟妇有码无码 | 欧美精品中文字幕亚洲专区| 成在线人AV免费无码高潮喷水| 7国产欧美日韩综合天堂中文久久久久 | 国产精品无码一区二区在线| 亚洲精品无码永久在线观看你懂的 | 精品亚洲A∨无码一区二区三区| 日日摸夜夜添无码AVA片| 中文字幕国产在线| 在线观看免费无码视频| 日韩AV片无码一区二区不卡电影| 亚洲中文久久精品无码ww16| 中文字幕本一道先锋影音| 中文字幕一精品亚洲无线一区| 无码AV大香线蕉| 精品无码三级在线观看视频| 国产成人无码18禁午夜福利p| 亚洲AV中文无码乱人伦下载 | 一本色道久久HEZYO无码| 区三区激情福利综合中文字幕在线一区亚洲视频1 | 国内精品人妻无码久久久影院导航 | 国产激情无码一区二区三区| 国产精品亚洲аv无码播放| 亚洲AV永久无码精品成人| 亚洲精品~无码抽插| 亚洲中文字幕久久精品无码喷水| 中文字幕一区一区三区| 中文字幕免费观看| 亚洲av午夜国产精品无码中文字| 中文字幕无码久久人妻| 大桥久未无码吹潮在线观看| 午夜不卡久久精品无码免费| 日韩AV无码久久一区二区| 97性无码区免费| 日本阿v视频高清在线中文| 人妻无码αv中文字幕久久琪琪布| 日韩中文字幕在线观看| 中文字幕51日韩视频|