China to lose $3.6 bn in tax due to SARS

China could incur a loss in tax revenues to the tune of $2.4-3.6 billion due to the SARS outbreak. The prediction is based on the possible impact the disease will have on the economy and the government’s efforts to reduce taxes and fees for some service industries, said Zhang Peisen at Taxation Research Institute.

The government said taxes and fees, including business tax, levied on some industries like tourism and hotels will be reduced or waived between may one and september 30, 2003 in view of SARS. In Beijing, hardest-hit by SARS, government has cut business tax for taxi drivers. These tax initiatives amount to around $1.2-2.4 billion.