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They do not.

I know, it's crazy. I am sure there are political/economic/historical reasons, but the central government does not share tax revenue with the provinces, putting the provincial government in a really tight spot.

Also, the inability of the central government to collect income taxes is something people in the West can't wrap their heads around.

For information about this, look at: https://china.ucsd.edu/_files/2023-report_shih_local-governm...

https://rhg.com/research/the-myth-of-chinas-fiscal-space/



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