Others News
- Stamp duty hike may raise extra US$40b
Date: 5-Jun-2007 Sources: (Shenzhen Daily)
THE government is expected to gain an annual windfall of up to US$40 billion from the tax increase on share trading announced last week if turnover on mainland markets stays at current levels, the Financial Times reported yesterday.
The huge potential bonanza of revenue from the tax increase is equivalent to about 7 percent of the total government annual budget and could help accelerate the government's plans to expand social spending in rural areas, the newspaper said. Even with daily trading of half the volume seen last Wednesday, which hit a record US$53 billion, the extra income from the tax hike, to 0.3 percent from 0.1 percent, would be around US$23 billion, the newspaper said.
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