40 Pct of Firms' Income Eaten by Taxes and Fees, Ministry Paper Says

Companies in China could be paying as much as 40 percent of their income on taxes and government fees, a Ministry of Finance document published on July 22 indicates, shedding light on the rapidly rising cost of doing business in the country.

The document the information came from made recommendations for policies regarding industrial operations. It said the amount companies paid in taxes, special government levies, employees' social security payments, and other fees and charges was higher than the average for Organization for Economic Cooperation and Development countries.