The Chinese government is reportedly planning to use blockchain technology for managing taxation and the issuance of electronic invoices. The announcement was made by the Miaocai Network, which is a state-sanctioned electronic taxation and invoicing enterprise. The Network revealed that it will be collaborating with the “government affairs chain GACHAIN” to create a blockchain-based system for “social taxation” and electronic invoicing.
“The Chinese government will utilize blockchain technology for social taxation and electronic invoice issuance matters.”
The benefits for the government are clear. While reports indicate that China’s existing tax system brings in nearly two and a half trillion dollars in revenue, officials believe that there is widespread tax evasion. In addition, there are sectors of the economy that have not yet been brought into that tax system. Chinese officials recognize that blockchain technology can help to better organize and manage the tax collection system, and enhance revenue collection.
GACHAIN is being developed by blockchain tech company Shenzhen ChainHold Technology Investment CO., Ltd., and anticipates the initial launch of its new system around October 2017. Unlike standard blockchain systems, GACHAIN is designed to ensure that command and control of the entire system remains in the government’s hands.
The Chinese government has accelerated its effort to integrate blockchain technology throughout the public and private sectors in recent months, even as other major governments are still trying to come to terms with the new technology.