XIN) 1st Ld: China raises stamp tax on securities to cool stock market
BEIJING, May 29, 2007 (Xinhua via COMTEX) -- China will raise the stamp tax on securities trading from the current 0.1 percent to 0.3 percent beginning May 30, the Ministry of Finance said Tuesday night.
An official with the ministry said the tax rise, which has been approved by the State Council, or the Chinese cabinet, is intended to help promote the healthy development of the securities markets.
The government lowered the tax rate from 0.2 percent to 0.1 percent in January
2005 in an effort to boost the bearish market.
China imposed a six per thousand stamp tax on stock transactions when its stock markets were created since 1990. The tax rate was later readjusted a couple of times. China has collected more than 100 billion yuan (some 12 billion US
dollars) in stamp tax on stock transactions since then.
Copyright 2007 XINHUA NEWS AGENCY.
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