Thursday, December 13, 2007

Learn mandarin - Netizens positive about new tax

BIZCHINA / Impacts

Netizens positive about new tax
(Xinhua)
Updated: 2006-03-27 08:46

In a survey by Chinese Website www.sina.com, 73 percent of the 25,000
respondents said they would avoid using disposable wooden chopsticks when
a tax is imposed on them next month.

China announced last week its plan to impose a five-percent consumption
tax on disposable wooden chopsticks as of April 1 this year, in a bid to
discourage their use as they are a waste of timber resources.

Though experts in the catering industry said the tax on each pair of
chopsticks is very small, the idea behind the policy is much more
important.

"The adjustment of consumption tax indicates that the government is
paying more attention to sustainable development," said Gao Huiqing, an
official with the State Information Center.

Ranging from street dining alcoves to delicately decorated restaurants,
disposable wooden chopsticks have become typical tools for the Chinese.

The production of disposable chopsticks uses up China's forests at a rate
of 1.3 million cubic meters of timber or 2 million cubic meters of
forests each year, the Ministry of Finance said.

China sells 10 million boxes of wooden chopsticks domestically and
exports about 6 million boxes each year, which amounts to 15 billion
pairs of chopsticks, according to the ministry.

In order to help protect the environment by reducing consumption of
timber resources, and narrow the gap between the poor and the rich by
collecting a consumption tax on the luxury items, China will also impose
a five percent tax on wooden floor panels.

The country has also imposed a 10-percent tax on yachts, golf balls and
golf clubs, and a 20-percent tax on luxury watches.

(For more biz stories, please visit Industry Updates)

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