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Reporters' Log

Regulators not giving up on abolishing stock dividend tax

By Li Weitao (chinadaily.com.cn)
Updated: 2009-03-07 10:53

Investors trade stocks at a brokerage firm in Yichang, Hubei province, Feb 16, 2009. [Asianewsphoto]

Chinese stock regulators are still holding discussions with other government agencies about abolishing the stock dividend tax, Fan Fuchun, vice chairman of the China Securities Regulatory Commission (CSRC), was quoted by Beijing Times as saying.

The CSRC has been trying to abolish the tax since February 2004. However, disagreements between various government agencies have thwarted the efforts, indicated Fan on the sidelines of the Chinese People's Political Consultative Conference (CPPCC).

The stock dividend tax will be abolished only after various parties reach a consensus, Fan said. The current tax rate for dividends is 20 percent. According to Chinese laws, abolishing the tax requires final approval from the top lawmakers.

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