China’s Social Security Tax Reform Expected to Have Major Effect on Public Consumption

China’s Social Security Tax Reform Expected to Have Major Effect on Public Consumption
A woman walks past a sale sign at a fashion outlet in a shopping mall in Beijing on July 15, 2015. GREG BAKER/AFP/Getty Images
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China’s state taxation services will uniformly collect all social security taxes, starting in January, in an effort to counter tax evasion and cover increasing shortfalls in social insurance funding.
Previously, those taxes were collected by different agencies and authorities across China, and loopholes in the system allowed many businesses to dodge the levies.