Chinese lose patience with taxes

Many feel the country's tax system is unfair

By Francis Markus BBC correspondent in Shanghai

There is growing discussion in China about the unfairness of the country's income tax burden.

The latest talking point has been the arrest of a Beijing-based film star for allegedly evading more than $1 million in taxes, and there are reports that more entertainment personalities are to be investigated.

They don't go near their wives because they have mistresses and they don't dip into their salaries because they don't need to

Internet bulletin board comment on officials

But public resentment is also targeted at officials.

"Robbing the poor to help the rich" - that is how one senior researcher at China's Development Planning Commission described what many people think of the country's income tax system.

He warned that the issue was affecting social stability.

The official, Chen Dongqi, was quoted in one of the country's more outspoken - but state-owned - newspapers, Southern Weekend.

The arrest late last month on tax evasion charges of the film star Liu Xiaoqing has intensified public discussion of the issue.

Tired with corruption

Many Chinese point accusing fingers not just at movie personalities but at officials that they perceive as being corrupt and greedy.

Actress Liu Xiaoqing was arrested for tax fraud last week

"They don't go near their wives because they have mistresses and they don't dip into their salaries because they don't need to," said one comment on an internet bulletin board.

Chinese state media say that about 90% of the income tax revenue in the capital, Beijing, currently comes from lower- and middle-income earners.

The government says it has strengthened its campaign to make high-income earners pay their fair share and its latest enforcement targets are Beijing-based foreign companies.

It desperately needs the tax revenue to help set up a state-run welfare system.

And as the Communist Party pays more and more attention to recruiting members among China's new class of wealthy and powerful business people, it is an issue that is bound to remain in the spotlight.