China wants to improve tax-cut policies

December 26th, 2011 - 5:06 pm ICT by IANS  

Beijing, Dec 26 (IANS) China will further its efforts to make adjustments in tax reduction policies next year in a bid to improve people’s livelihood, China’s Finance Minister Xie Xuren said.

While laying out the roadmap for next year’s tax-cut policies, Xie said the ministry will focus more on reforms in the taxation system in 2012 to build up a mechanism that is conducive to the country’s economic restructuring, reported Xinhua.

The measures will include lowering of tariffs to encourage imports of energy, resources, high-tech equipment and key components, Xie said.

The finance ministry said earlier this month that the average tariff on more than 730 kinds of imported goods will be lowered to 4.4 percent as of Jan 1, 2012.

Xie stressed that the ministry will clear up unreasonable and illegal tax items to ease burdens on businesses and communities, adding that it is also mulling policy adjustments in some other categories next year, including resources tax, consumption tax and property tax.

Xie added that in 2012 the ministry will work to better its role in income distribution management, increase the income of vulnerable groups and gradually lift the share of personal income in the distribution of national income.

To support domestic consumption and narrow the wealth gap, China has raised the threshold at which individuals must pay income taxes from 2,000 yuan ($316) to 3,500 yuan Sep 1, which has saved citizens more than 60 billion yuan since its implementation, said People’s Daily.

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