The Chinese government put forward new tax rules to restrict the tax evasion in the film industry. The illegal payment taxes in the film industry which involves the fake agreement with an unreasonable payment to avoid the tax. It also used in the making of the films to reduce the costs of production.
The new planning was made after some investigation for tax evasion and by finding out the famous celebrities who charged by signing the fake agreements.
According to the tax regulators, the illegal payment taxes ruined the whole film industry, now the market is worth 8.6 billion dollars. In the new system, the salaries to the actors must not go beyond 40% of cost production and to the stars not exceed than 70% of total wage costs.
These measures are taken to rectify the Chinese youth from following the stars blindly and to control the money-worshipping and make them aware of the social priority rather than the box office returns.