More important than fence mending, the rules guarantee taxpayers' legal rights; an important step in enhancing the public's awareness of tax collection and related issues.

China began implementing on Tuesday the detailed rules -- replacing the regulations enacted nine years ago -- governing the supervision and administration of tax collection.

The rules outline stiffer penalties for anyone convicted of evading taxes.

Income tax has become the government's major source of revenue as China's rapid economic development has translated into stuffed wallets for residents.

Nowadays, taxes are being levied on salaries, purchases of homes and interest earned from savings accounts.

Revenue from personal income taxes has grown the fastest of China's levies, posting an annual average growth rate of 48 per cent over the past eight years.

Statistics indicate about 100 billion yuan (US$12 billion) in taxes -- 41 per cent from salaries -- were collected last year by China. Meanwhile, China lost a substantial amount of tax revenue, particularly from individual taxes, due to inadequate tax collection and the lack of a credit-information system.

The rules will standardize tax collection, minimize collection costs, make tax paying more convenient and efficient and make it easier to catch and punish tax dodgers.

The regulations also protect taxpayer's legal rights; for example, by guaranteeing basic personal exemptions.

In recognizing taxpayers' basic rights, the regulations place China's tax authority on an equal footing with individuals before the law.

That, we believe, will compel tax officers to behave in accordance with the law, and encourage Chinese residents to pay their share of the taxes.

(China Daily October 18, 2002)