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  3. Will China’s new local surtax provide relief for its regions’ fiscal headaches?

South China Morning Post

Will China’s new local surtax provide relief for its regions’ fiscal headaches?

As even China’s wealthiest provinces continue to run deficits and rely on the central government to make ends meet, Beijing is loosening the reins on the country’s highly centralised fiscal system, with legislation for a new tax category – the local surtax – under way. Late last month, the Ministry of Finance unveiled a draft local surtax law for public consultation. The proposed tax would merge three existing levies – the urban maintenance and construction tax, education surcharge and local...

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By South China Morning Post

15 September 2026|1 min read
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Will China’s new local surtax provide relief for its regions’ fiscal headaches?
Will China’s new local surtax provide relief for its regions’ fiscal headaches?
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