Contracted, direct, and proxy collection: the evolution of stamp duty administration in modern China

China’s traditional tax system underwent gradual modernization, with the introduction of Western taxation institutions constituting a crucial part of this transformation. As a tax introduced from the West, stamp duty evolved from contracted to direct collection, and eventually to collection via postal agencies. At the initial stage of stamp duty implementation under the Beiyang Government, many provinces adopted a contracted collection system administered through chambers of commerce to ease conflicts between tax collectors and taxpayers. After the founding of the Nanjing Nationalist Government, the Ministry of Finance aimed to expand stamp duty revenues by introducing a public bidding system for tax farming. Yet amid widespread opposition from business circles, this arrangement was subsequently replaced by direct state collection. In 1934, the Ministry further reformed the system by instituting collection through post offices acting as fiscal agents. The evolution of stamp duty collection and administration reflected a series of institutional choices made by the governments in light of their administrative capacity, as they balanced collection costs and revenue efficiency. This illustrates that the introduction of Western tax institutions necessitated adaptation to China’s specific socioeconomic conditions. It also highlights the pluralistic developmental paths of tax administration in modern China.