Global Daily Tax News, China To Merge Local Surtaxes, (Sep 8, 2026)

Chinese authorities have proposed the amalgamation of three levies charged by local authorities into a single local surtax.

The surtax would replace the City Maintenance and Construction Tax, Education Surtax, and Local Education Surtax, at a combined rate of between 11 to 13 percent, set at the discretion of local authorities with approval from central government authorities.

The City Maintenance and Construction Tax is charged at rates of either seven, five, or one percent, depending on the locality, while the Education Surtax and Local Education Surtax are charged at rates of three and two percent, respectively, for a combined burden of between 12 and six percent currently. These levies are charged on the value-added tax and consumption tax payable by consumers, except for on imported goods or services.

Draft legislation must now be approved by lawmakers before implementation.