RESOLUTION ON PROMULGATION OF PROVISIONAL TAX LAW--ADOPTED AT THE FIRST SESSION
OF CENTRAL EXECUTIVE COMMITTEE

28 November 1931

[Text] 1. Tax yields are a most important source of state revenue and expenditure. In accordance with the provisions of the Constitution, the Central
Government has abolished all land tax, poll tax, exorbitant taxes, miscellaneous
levies, likin tax, etc. of the Kuomintang warlords and put into effect a
single progressive tax.

2. To any sector, a single progressive tax means that only one category of
tax shall be levied. The fundamental rule of tax collection is that apart
from placing the burden of paying taxes on the exploiting class, the matter
shall be resolved according to the principle of class. The exploited class
and people from the poorest strata shall be exempt from taxes.

3. At the present time, due to the revolutionary war, the Soviet areas all
over the country are not contiguous to one another. Because of this and many
other special circumstances, agricultural tax can only be levied with the
tax on staple products as a standard. For the time being, the tax on all
subsidiary products will not be imposed. Also, agricultural tax is levied
only from persons who produce more than enough to meet their necessary living
expenses on a progressive scale. All those who do not reach that standard
will be exempt from taxes. Taxes to be imposed on rich peasants will be
comparatively heavy. For them the standard for taxation will be lower by one half than that for poor peasants. This fundamental rule is prescribed to
enable the various provincial governments to determine the agricultural tax
rates according to local actual conditions.

4. With a view to developing the economy in the Soviet areas at present,
commercial export and import duty and industrial production tax will be dispensed with for the time being.

5. This Tax Law will be put into effect on 1 December 1931.

Central Executive Committee
Chairman: Mao Tse-tung
Vice-chairmen: Hsiang Ying
Chang Kuo-t'ao
*Chinese Soviet Republic Economic Policy
*Red Bandit Reactionary Documents, No 4