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Foreign-funded firms in China have cashed in on taxation loopholes to evade an immense amount of tax, a member of the country's top political advisory body said Wednesday.

 

It is estimated that foreign-funded firms elude 30 billion yuan (US$3.75 billion) of tax each year in China, said Chen Wangang, a member of the National Committee of the Chinese People 's Political Consultative Conference (CPPCC), which is in its annual full session.

 

"We are short of professionals capable of fighting tax evasion and our information system is backward," said Chen from Southwest China's Chongqing Municipality.

 

Chen also attributed the problem to some local governments' indulgence to the multinationals that contribute a lot to local economic development.

 

The pace of unifying the dual taxation system for domestic and foreign-funded enterprises must be quickened, Chen added.

 

Composed of elite members of the society, national and local CPPCC committees serve as think tanks for the country's legislation, administration and law-enforcement.

 

(Xinhua News Agency March 9, 2006)