To cancel the stamp tax???

To cancel the stamp tax???
Mar 2, 2008 03:22
YVONNE Points: Join Date: Nov 29, 2004 Status: offline	Those who invest in the stock market must be familiar with the stamp tax. In recent days, stamp tax has become the hottest topic in China. Many people advise to cancel the stamp tax or decrease the stamp tax rate. Why? The data suggests that the turnover of the dividends of those listed companies has reached 180 billion yuan in 2007. However, the revenue of the stamp tax has exceeded 200 billion yuan. This is abnormal. Thus, stamp tax should be cancelled. Since stamp tax can bring profitable tax revenue, some people object to cancelling it. What do you think? Should China cancel the stamp tax?

Mar 2, 2008 03:22

YVONNE
Points:
Join Date: Nov 29, 2004
Status: offline

Those who invest in the stock market must be familiar with the stamp tax. In recent days, stamp tax has become the hottest topic in China. Many people advise to cancel the stamp tax or decrease the stamp tax rate. Why? The data suggests that the turnover of the dividends of those listed companies has reached 180 billion yuan in 2007. However, the revenue of the stamp tax has exceeded 200 billion yuan. This is abnormal. Thus, stamp tax should be cancelled. Since stamp tax can bring profitable tax revenue, some people object to cancelling it. What do you think? Should China cancel the stamp tax?

Mar 2, 2008 11:15

APAULT
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Join Date: Mar 11, 2006
Status: Offline

Definitely NOT. It is a tax on teh wealthy...yes, the wealthy as they are people who have funds to invest or gamble. More objective;y, it is a good way of keeping a broad base to raising tax. You can choosse whether to pay this tax or not, you can decide not to invest if you don't want to pay the tax. Futhermore, many taxes are evaded, but this one catches everyone who wants to buy shares - greate
tax! (

Mar 2, 2008 20:23	#2
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	Paul, I like your argument. To balance the gap between the rich and the poor, more taxes should be levied on those rich people. However, many reports say that stamp tax on the stock trading might be changed very soon. Some experts suggest levying stamp tax on these stock sellers instead of both sides. I don't know if the suggestion will be approved by the central government.

Mar 3, 2008 23:28

MARRIE
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Join Date: Jan 7, 2008
Status: Offline

‘’it is a good way of keeping a broad base to raising tax.’’

I agree with paul. Tax base should be expanded to dividends tax, property tax, goods/sales tax. For those speculators in stock mkt, progressive stamps tax rates should be put in place. Rates should vary with trade volumes, i.e., excessive volumes after one level of threshold will be taxed at next higher level of threshold. I heard stamps had been lowered for more liquidity since several listed co announced issuing bonds

Mar 4, 2008 19:28	#4
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	Marrie, the central government once lowered the stamp tax last year. The rumour says that the stamp tax will be lowered to 1.5%。very soon. I don't know if it will come true.

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