Reform of Taxes and Charges Imperative ����One of a series of commentaries in the People's Daily on reform of taxes and charges says that the reform has a far-reaching significance in further improving the distribution order, codifying government behavior and cutting down on corruption. ����It says that arbitrary charges have been a critical phenomenon in the economic and social life in China. This has created heavy burdens on enterprises and the people and other sectors of society, infringed on national interest, disrupted distribution relations and order, eroded financial revenue and abetted malpractices. ����It was reported that there existed 4 problems concerning administrative and institutional charges and government-related funds, namely, management out of control, aggravated burdens, erosion of tax bases, and collection and diversion for other use of charges by units and departments in violation of control regulations and evading supervision. ����These facts suggest that positive and steady reform of taxes and charges and standardization of management of charges must be enforced. ����How to implement the reform? Part of charges with tax characteristics will be replaced by appropriate taxes for the purpose of consummating the tax system; part of nongovernmental charges will be turned into managerial charges for the purpose of codifying government and market behaviors; a great deal of irrational and illegal charges will be abolished to further codify the distribution order of government revenue; and a small amount of retained government charges will be put under codified financial management and enforced supervision by the People's Congresses. ����The commentary is convinced that these measures will be able to improve the distribution order, codify government behavior, alleviate corruption and fundamentally reduce the burdens on the back of enterprises and the people. Economicnews 1999-04-25 Page1 Full Story in Chinese