BIZCHINA / News
Stamp tax on stock trading lifted to 0.3%
(China Daily-Xinhua)
Updated: 2007-05-30 08:26
The stamp tax on securities trading has been raised from 0.1 percent to
0.3 percent beginning today, the Ministry of Finance said late last night.
An official with the ministry said the tax increase is intended to help
promote the healthy development of the securities markets; and analysts
said the move is to cool the over-heated market.
The tax rise will cover buying and selling of both A and B shares. It
will also apply to inheritance and endowments.
The government lowered the rate from 0.2 percent to 0.1 percent in
January 2005 in an effort to boost the then bearish market.
But from early last year, the market value has quadrupled as millions of
retail investors joined the market frenzy, sending indices to record
highs almost daily.
The benchmark Shanghai Composite Index yesterday closed at an all-time
high of 4334.92 points, up 1.47 percent.
The smaller Shenzhen Component Index closed at 13456.6, up 3.3 percent.
The two bourses registered a combined turnover of 378.37 billion yuan
($49.5 billion), slightly lower than the record 394.22 billion yuan from
the previous close.
China has collected more than 100 billion yuan ($12.8 billion) in stamp
tax on stock transactions since the early 1990s, when it was first
introduced.
(For more biz stories, please visit Industry Updates)
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