China's macro tax burden is lower than the world average of 38.8 percent, reported China News Service. Going by the International Monetary Fund's standards, China's ratio was 30.5 percent in 2014 and 30.1 percent in 2015.
The macro tax burden index can be especially meaningful when measuring a country's tax burden because the ratio of fiscal revenue accounting for GDP can better reflect the concentration ratio of government financial resources in a specific economic structure, and can manifest certain fiscal and taxation systems. It also can analyze the characteristics of an economy's financial allocation and the government's role in controlling resources for the administration.
Generally speaking, China's macro tax burden is lower than the world average of 38.8 percent. Comparing this index to the international level, going by IMF standards, China's ratio was less than 34.4 percent in 2013, which is the average for developing countries but much lower than that of advanced economies.
Since 2015, China has carried out a series of tax cuts and measures to reduce expenses for taxpayers. The range of taxpayers enjoying preference for enterprise income tax affecting small, low-profit enterprises has been expanded twice. The application procedure for preferential tax programs affecting college students' innovative projects has been simplified. China's vehicle purchase tax was halved from 10 percent to 5 percent for low-emission passenger vehicles.
Authorities are expected to announce further tax cuts to stimulate economic growth and support structural adjustment in 2016.