The ratio of the total tax revenue to GDP has declined over the 1990s, although the total tax revenue has increased substantially. The main reason for the decline is the rapid growth of the service sector, whose tax burden is lower than that of manufacturing, and an increase in foreign INVESTMENT, mostly in special zones where very generous tax incentives have been granted. The 1994 tax reform emphasized taxation on consumption, and currently efforts are being made to fine tune these indirect taxes , particularly the administration and collection of VAT. The abuse of invoices is a serious, continuing tax fraud problem. The main tax types for business, citizens, foreign enterprises, and foreigners in China are value-added tax (VAT); consumption tax; business tax; foreign enterprises income tax ; individual income tax; customs duties ; urban estate tax ; vehicle and vessel usage and license plate tax; land appreciation tax; stamp duties; resources tax; and deed tax.
Read more: http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/China-POLITICS-GOVERNMENT-AND-TAXATION.html#ixzz3Ynhtub1Y