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Chinanews, Beijing, April 28 - According to Song Lan, deputy director of the State Administration of Taxiation (SAOT), it is not the right time to cancel the imposition of interest tax, as its active effect must not be overlooked.
Song released the information on April 27 in Beijing. "Interest tax has been playing an important part in guaranteeing basic social insurances, like unemployment insurance and endowment insurance via financial transfers," said Song. "All the interest tax collected has been used properly, and even become a rigid1 financial expenditure2. Besides, interest tax is a necessary tool to modify the income distribution, as it has a bigger effect upon wealthy people. Finally, interest tax helps promote demands and guide consumption in the domestic market. Thus I believe it is too soon to cancel interest tax right now," concluded Song.
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