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President calls for tax cuts, major reforms
2010-01-13 08:53:55Source:Global TimesAuthor: Jiang Wanjuan
The country is expected to introduce additional tax cuts to help people keep more of their income and to encourage them to spend more to boost domestic consumption.
President Hu Jintao, who also is the general secretary of the Central Committee of the Communist Party of China, outlined ways Friday on how to deepen fiscal and taxation system reforms and to ensure the economic development and financial stability.
It is imperative to continue the pro-active fiscal policy and moderately loose monetary policy, with priority given to the implementation of policies that support domestic consumption expansion, economic growth, economic structure adjustments and projects concerning people's livelihood, Hu said at a seminar attended by members of the Political Bureau of the CPC Central Committee and researchers from the nation‘s top think tanks.
Hu called for improving the taxation system by optimizing the taxation system structure, working out a more fair distribution of the tax burden, noting that more effort would be made to increase the purchasing ability of common people through a tax reduction.
No details were available.
Li Jing, a professor at Dongbei University of Finance and Economics, told the Global Time Sunday that the strategy could provide more options for the average worker.
"A cut in tax on personal income means people will have more money after taxation. People will choose to deposit or spend the money that they save from tax," said Li, adding that it was the first time President Hu spoke publicly on the reforms of taxation.
Some people agreed.
Yang Cheng, 34, a senior project manager in Beijing, told the Global times Sunday that 10 percent of his income is taken by the government for taxes.
"If the tax is cut, I would like to spend the money on traveling," said Yang.
Previously, the nation already introduced a tax policy in favor of the public.
The starting point of personal income tax was increased from 1,600 yuan ($234) to 2,000 yuan ($293) on March 1, 2008, as a result of a decision made at the 31st Session of the Standing Committee of the 10th National People's Congress.
The president also called for further adjustments in the nation's income distribution policy to increase people's income.
"The current income distribution gives more preference to the nation and enterprises. But we can see that more attention is expected to be paid to people's well-being," Li added.
Xinhua contributed to this story
President Hu Jintao, who also is the general secretary of the Central Committee of the Communist Party of China, outlined ways Friday on how to deepen fiscal and taxation system reforms and to ensure the economic development and financial stability.
It is imperative to continue the pro-active fiscal policy and moderately loose monetary policy, with priority given to the implementation of policies that support domestic consumption expansion, economic growth, economic structure adjustments and projects concerning people's livelihood, Hu said at a seminar attended by members of the Political Bureau of the CPC Central Committee and researchers from the nation‘s top think tanks.
Hu called for improving the taxation system by optimizing the taxation system structure, working out a more fair distribution of the tax burden, noting that more effort would be made to increase the purchasing ability of common people through a tax reduction.
No details were available.
Li Jing, a professor at Dongbei University of Finance and Economics, told the Global Time Sunday that the strategy could provide more options for the average worker.
"A cut in tax on personal income means people will have more money after taxation. People will choose to deposit or spend the money that they save from tax," said Li, adding that it was the first time President Hu spoke publicly on the reforms of taxation.
Some people agreed.
Yang Cheng, 34, a senior project manager in Beijing, told the Global times Sunday that 10 percent of his income is taken by the government for taxes.
"If the tax is cut, I would like to spend the money on traveling," said Yang.
Previously, the nation already introduced a tax policy in favor of the public.
The starting point of personal income tax was increased from 1,600 yuan ($234) to 2,000 yuan ($293) on March 1, 2008, as a result of a decision made at the 31st Session of the Standing Committee of the 10th National People's Congress.
The president also called for further adjustments in the nation's income distribution policy to increase people's income.
"The current income distribution gives more preference to the nation and enterprises. But we can see that more attention is expected to be paid to people's well-being," Li added.
Xinhua contributed to this story
