Re:Chinese Netizen Fined over 1M Yuan for Using VPN
by seanmcdirmid on Friday October 06, 2023 @03:40AM
(#37788135)
Taxes in China are collected locally. There is no IRS in China, each city (or province? I’ve never worked in a province before) will collect income taxes and then send off a large portion to the central government. Since the central government usually has a huge take on income taxes and VAT, localities are often very starved for funding (they used to make most of their budget via land transfer and development fees).
I read this kind of comments in mainland's internet forums as well. People opposing this theory said that it should be the national tax authority handling this, not a local police department. Considering the local government did something crazy previously as well (collect fees from local corporations by threatening them), this seems like a problem with the local government instead of a nation-wide thing.