CHINA has unveiled new rules to help increase tax collection by cracking down on evaders and cheats as the government seeks to fund its deficit spending, State media said yesterday.

　　The rules would take effect Oct. 15, replacing those in effect since 1993, the China Business Times said.

　　The regulations would set up a tax collection registration system to bolster supervision of taxpayers and encourage people to report evasion, it said.

　　Authorities would slap fines on those involved in tax fraud and evasion, and could bring criminal charges against serious violators, said the rules published in several newspapers.

　　They also detailed ways to prevent corporate tax evasion.

　　Premier Zhu Rongji, concerned over a widening fiscal deficit and rampant tax evasion, has urged authorities to try to increase State revenues and reduce spending.

　　The government has been trying to boost tax revenue this year by closing loopholes and cracking down on smuggling to keep the deficit — budgeted at a record 309.8 billion yuan (US$37.4 billion) for this year — under control.

　　China’s tax revenue, excluding tariffs and agricultural taxes, rose a lacklustre 11 percent year on year in the first eight months of this year, State media has said.

　　In a high-profile case meant to show China’s determination in hunting down wealthy tax dodgers, police arrested Liu Xiaoqing, one of China’s most famous film stars, in July on charges of tax evasion.(SD-Agencies)