The inheritance tax topic attracts wide concern in the “Two Sessions” of China

By | March 7, 2013

Xiao Jie, director of the State Administration of Taxation said in an interview, the delay of the implementation of the inheritance tax levy is due to three problems. First, there isn’t a unified understanding within the whole society regarding the collection of inheritance tax. The second is that there should be a scientific procedure to handle such tax duty, since the topic of the inheritance tax started just in the recent years so it is not a “timetable”. Third, solutions should be developed to solve the problem of tax collection which might appear. And inheritance tax is generally considered one of the very difficult taxes levied world in term of implementation. Therefore, we must first generate common understanding regarding the coverage of personal heritage.

Since the first time the Beijing Normal University proposed to levy inheritance tax, it has become one of the hot topics of the national “two sessions” this year. From the comments of the director above, what we can see are excuses and explanations. It is true that difficulties exist, but there is no relationship between difficulties and delaying the beginning of the inheritance tax which is widely accepted in the developed economies. In contrast, it is easy to learn from other systems in which such tax is well developed.

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