New Delhi: In an effort to boost tax collection amid slowing economic growth, China has introduced a new regulation requiring e-commerce companies to share seller data with government agencies. According to a report, this move aims to enhance transparency and improve tax compliance across online platforms.
The Financial Times reported that the new law came into effect in October, and major e-commerce companies like Alibaba, Pinduoduo, and Amazon have started sharing detailed seller information with Chinese authorities. The data includes merchant names, order volumes, sales figures, profits, and income generated through virtual gifts and digital tokens.
Officials have noted early positive results from the policy. Lian Kifeng, director of the State Taxation Administration, stated that by the end of the third quarter, over 7,000 e-commerce platforms had submitted tax-related data. In a December briefing, Lian mentioned that tax revenue from e-commerce platforms increased by 12.7 percent in the third quarter compared to the previous year, although the total collected amount was not disclosed.
This policy change comes at a time when China’s economic growth rate is at a multi-decade low, impacted by factors such as US tariffs and declining property prices. To strengthen tax collection, the State Taxation Administration has launched several initiatives, including enforcing a 20 percent tax on global capital gains for investors, reducing tax incentives in sectors with excess industrial capacity, and cracking down on companies manipulating invoices to claim fraudulent tax exemptions.
Official data shows that in 2024, online sales of physical goods reached 12.8 trillion RMB (approximately 1.8 trillion USD), accounting for nearly 27 percent of China’s total retail sales.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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