The adoption of Central Bank Digital Currency (CBDC) is steadily growing in China and the digital yuan is pioneering in the fields of import taxation and international trade. According to the Securities Times, Guangdong in China has lately begun refunding its import tax using the digital yuan. As an example, a firm named Huizhou Tianbao Chuangneng Technology was due to be refunded a sum of $1,035 and this was efficiently given to its corporate wallet in digital currency. Moreover, Guangzhou, Zhaoqing, and other parts of the country that are engaged in the pilot program are commencing digital yuan payment and tax refund services reckoned for value-added tax, corporate income tax and other taxes. This would fasten up the procedure for tax return as the local treasury departments would be able to receive and handle digital yuan refunds.
A proprietor, Guan, from Zhuhai was the first citizen in the nation to pay parcel tax on import from Macau, and this was done by making the payment with digital yuan. Macau is officially Chinese but it operates autonomously which is why the import tax was of approximately $52 that was paid with the People's Bank of China's electronic app with just scanning a QR code. This is an example of how using digital yuan speeds up the process and smoothens the passenger customs clearance procedure. Digital yuan consumption is making progress not just in China, but aboard as well, with major testing and trials currently being carried out in Macau and Hong Kong.
- Jayden Bennet
- 2023-03-31
Refunds of Import Tax in Digital Yuan Pioneering in China
China is leading the world in the Central Bank Digital Currency (CBDC) revolution, as Guangdong has begun refunding import taxes using the digital yuan and pilot programs in Guangzhou, Zhaoqing and other parts of the country are commencing digital yuan payment and tax refund services.