China Will Start Using Blockchain Technology To Collect Taxes
Commerce and digital tech are becoming ever more intimate bedfellows in China. A survey last week revealed that the Middle Kingdom could become a cash-free society sooner than we expected, and now the nation is working wonders with blockchain technology, "a digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly." The government announced that it will soon start to “utilize blockchain for social taxation and electronic invoice issuance matters.”
The move will be overseen by the Chinese taxation service Miaocai Network, and comes after the government listed the technology as a priority in its most recent Five-Year National Informatization Plan. Several other initiatives are already under progress, such as using the blockchain to track the supply of chickens across the country, or to tackle the problem of counterfeit food.
“China’s tax collecting procedures feature slow tax reporting times and insufficient coordination.” according to Jie Du, Chairman of Miaocai Network. Fortunately, the transparency and security of the blockchain make it a very suitable option for tax collection, particularly as it prevents tax evasion through the use of electronic invoices.
“The public can also check the validity of every document, thus simplifying the entire business process, increasing convenience and transparency, and putting a curb on invoice-related problems.” Du stated further. Many experts are claiming that this is only the start of the various applications of the technology, but it seems that China is one of the first to be putting it to some good use.