"It's actually not a new policy," said Lin Zhiping, an official with the bureau. "However, these rules have been ignored in the past. It's the time for us to tighten up on regulations."

Since more college students are earning considerable income in their spare time, working as family tutors, translators and assistants in companies, the bureau now sees submitting taxes as a necessity.

However, the measure hasn't received much response from students or colleges.

Rules and regulations

Under China's tax laws, payments on total taxable earnings should be made monthly.

Those making less than 800 yuan ($97) per month are exempted from payment. A 20 percent tax is charged on monthly income between 800 and 4,000 yuan; and taxes are calculated at 36 percent for those earning between 4,000 yuan ($480) and 20,000 yuan ($2,400) per month.

There are two ways for students to hand in taxes - employers can deduct taxes from the source or individuals can pay themselves at the nearest tax institute.

"If students are found to be evading taxes, they will face severe fines. Companies and colleges are required to deduct taxes from the source," Lin said.

Students speak out

A student at Shanghai Jiao Tong University, who preferred not to be identified, said he does not worry about paying taxes.

He worked as a teacher in a business training programme, where he earned about 1,000-plus yuan monthly.

To evade taxes, he and the company agreed to break up his income and pay it over a period of time, so his income will be below 800 yuan a month. He said this is a common practice for college students.

Vincent Kong, a senior student with Shanghai International Studies University, is definitely a high-income earner, making about 4,000 yuan a month - a sum equal to that of an ordinary white-collar worker.

"I don't understand why the government doesn't make efforts to deal with those large companies that evade tax. Why focus on us students who have a hard time making money," he said.

Kong is financially independent and has been working ever since completing the entrance examination.

He began to work as a family tutor teaching English during that summer holidays and earned about 700 yuan.

Now he has 30 students and teaches in his own home.

Kong has to divide them into several classes according to their grades. All his time on weekends and several nights on weekdays is devoted to earning money to support his studies.

All the expenditures during his four years in university were paid by himself with an average yearly cost at about 10,000 yuan ($1,250).

Furthermore, he gave about 50,000 yuan ($6,046) to his parents to pay to decorate their new apartment.

Although the tax policy for college students has been set for years, Kong got to know it just recently.

"The policy is impossible to enforce. I myself will not go to the tax institute to hand in taxes," Kong said.

Teachers' opinions

Yao Fumin, head of the Journalism and Communication Department at Shanghai International Studies University, runs a evening school with student teachers and has spoken out on behalf of students.

"China's tax laws are not rational, especially for students. Taxes are taken according to the short-term payment, which, however, is a small amount if split over the year," he said.

He feels students who work to support their studies are already greatly burdened - it is not an easy task and the income is not steady.

He also noted that few students are aware of the tax policy.

"The policy is not feasible if it depends on the self-consciousness of the students," he said.

(Shanghai Star April 4, 2002)