FOREIGN-FUNDED companies will no longer be exempted from city maintenance and construction taxes from today.

China will begin collecting city maintenance and construction taxes and education-supporting taxes from foreign companies, and individuals with commercial interests in the country.

The two taxation items target companies, Zhang Hanya, chairman of the Investment Association of China told Xinhua news agency yesterday, saying the move will create a level playing field, in terms of tax, for all companies operating in the country.

Since the middle of the 1980s, domestic companies have been paying city maintenance and construction taxes and education-supporting taxes, which their foreign counterparts, including solely foreign-funded enterprises and joint ventures, were not required to pay, Zhang said.

"Since China's reform and opening-up, China has provided preferential policies in order to attract foreign investment to boost growth. Foreign-funded companies actually have enjoyed special treatment in terms of land use and taxation," he said.