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The chopstick tax

What do you get when you cross communism with capitalism, environmentalism with conspicuous consumption? A tax on golf balls and disposable chopsticks.

That is the answer in China, with its often conflicting ideologies. Rapid economic growth in the world's most populated nation has had some unpleasant side effects, particularly wealth disparity and environmental degradation. To address those concerns, the Chinese government will impose new taxes beginning April 1 that will attempt to even things out.

Where do well-heeled communists and capitalists hang out together? Country clubs, of course. So the government is imposing a new 10 percent tax on golf clubs and balls, and a 20 percent tax on luxury watches. And don't even think about buying a yacht.

Wooden chopsticks would seem to be a minor environmental concern, unless you have 1.3-billion people using them daily. It takes 70-million cubic feet of timber to provide China with disposable chopsticks each year, leading to the loss of forests throughout Southeast Asia. So the Chinese government is also putting a 5 percent tax on wooden chopsticks (and floor planks), while reusable plastic chopsticks will carry no levy.

Its policies to encourage fuel efficiency are ahead of this country. The Chinese will tax cars based on the size of their engines, with the highest rate of 20 percent imposed on gas guzzlers usually imported from America. Even General Motors China admits the policy "will be more environmentally friendly and help lower energy consumption."

Maybe the Chinese are on to something, after all.

[Last modified March 27, 2006, 00:31:13]