The 13th NPC Standing Committee (NPCSC) concluded its fifth session last Friday and adopted the E-Commerce Law, the Soil Pollution Prevention and Control Law, and an amendment to the Individual Income Tax Law. All three laws will take effect on January 1, 2019. Due to competing offline commitments, we are able to discuss only two laws in relative detail below.
The Council of Chairmen met on August 17 and decided that the 13th NPC Standing Committee (NPCSC) will meet for its fifth session from August 27 to 31. The session will consider at least seven legislative bills, including the much-anticipated draft Separate Parts of China’s first Civil Code, draft E-Commerce Law, and three tax bills. As usual, below we take a look at the legislative bills on the session’s agenda.
Last updated: October 24, 2021
China currently collects 18 types of taxes. They will generate an estimated total of 8 trillion RMB in revenue for the Central Government in 2018. But only six of them—providing only about a third of the central tax revenue—are imposed by laws [法律] enacted by the legislature, the NPC or its Standing Committee (NPCSC). The rest are governed only by interim regulations [暂行条例] adopted by the State Council—the Central Government itself. The enormous taxing power the State Council now wields was in fact granted by the NPC in 1984. Now, over three decades later, the NPC is reclaiming that power by gradually elevating the interim regulations into laws, with an eye to complete the process by 2020. In this post, we will explain why the NPC made the power grant in the first place and discuss what it has recently been doing to reassert its control over taxation.Continue reading “Tracking China’s Progress Towards Law-Based Taxation”
In his 2018 Government Work Report, Premier Li Keqiang vowed to “raise the [individual] income tax threshold and create expense deductions for items like children’s education and treatment for serious diseases.” Fulfillment of this promise primarily falls on the Ministry of Finance (MOF) and the State Administration of Taxation (SAT), which managed to draft an amendment to the Individual Income Tax Law and submitted it to the NPC Standing Committee (NPCSC) in under three months. But the bill did not fare particularly well in the NPCSC. According to reports by Caixin and the Legal Daily, legislators questioned certain main provisions of the draft amendment during group deliberations. Before turning to their opinions, we will first introduce the main content of the draft amendment below.
UPDATE (July 1, 2018): This post has been updated with information from this news release. We will not separately report on the NPCSC’s special session this month unless the resolution contains especially newsworthy content.
The Tobacco Leaf Tax Law (烟叶税法), Vessel Tonnage Tax Law (船舶吨税法), revised Specialized Farmers’ Cooperatives Law (农民专业合作社法), and Decision on the Exercise of Maritime Rights Protection and Law Enforcement Authority by the China Coast Guard (关于中国海警局行使海上维权执法职权的决定; see this post for details) take effect on July 1.
The NPC Standing Committee (NPCSC) is currently soliciting public comments on the following bills through July 28, 2018 (see this post for details):
- draft E-Commerce Law (电子商务法);
- draft revision to the People’s Courts Organic Law (人民法院组织法);
- draft revision to the People’s Procuratorates Organic Law (人民检察院组织法);
- draft amendment to the Individual Income Tax Law (个人所得税法).
The NPCSC will convene a special session on July 9–10 to hear a report on inspecting the enforcement of the Atmospheric Pollution Prevention and Control Law (大气污染防治法). In conjunction with hearing the report, the NPCSC will conduct a special inquiry (专题询问) (which senior State Council officials are expected to attend to answer questions) and adopt a resolution related to one of the Communist Party’s three ongoing “tough battles” (攻坚战): preventing and controlling pollution.
The NPCSC’s next regular session will take place in late August.