The announcement was made by the Miaocai network, a state-owned, electronic tax and invoicing company. The network indicated that it is planning to work with the Government Affairs Chain – GACHAIN. The main focus is on the development of a block-based system for “social taxation” and electronic invoicing.
“The Chinese government will use the blockchain technology for social taxation and the creation of electronic invoices in the future.”
The benefits for the government are clear. Reports suggest that China’s existing tax system will generate nearly two and a half trillion dollars in revenue. Officials believe that this is widespread tax evasion. In addition, there are economic sectors that have not yet been covered by the tax system. The use of blockchain technology can help to solve this problem. With the help of technology, tax revenues can be better organized and managed. Revenue can be increased simultaneously.
GACHAIN is operated by the blockchain tech company Shenzhen ChainHold Technology Investment CO. Ltd., further developed. The introduction of the new system is planned for October 2017. Unlike previous blockchain systems, GACHAIN is designed to retain command and control over the entire system in the hands of the government.
The Chinese government has accelerated its efforts to integrate blockchain technology across the public and private sectors in recent months.
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