China lawmakers approve new law allowing local governments to tax resources News
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China lawmakers approve new law allowing local governments to tax resources

Chinese legislators on Monday approved a new law that will allow local governments to tax up to 164 resources at their own discretion.

The new law is set to be implemented in September of next year. The rationale behind the new law is to provide local governments with the ability to assist their communities, especially those that have been impacted by natural disasters, which limit crucial resources.

Major resources such as crude oil will be still be subject to a centralized tax, while others deemed less important will be in the hands of local leaders. The new law will enable local governments to gain independence, autonomy and control over their respective community’s development.