China to step up tax reforms to achieve “common prosperity”

BEIJING: China will “strengthen adjustments” in tax collection to increase revenue and reform the country’s income distribution, but in a targeted and precise manner, as part of efforts to achieve long-term “common prosperity” term, “the state-run Xinhua news agency said.
China aims to “divide the pie” by “reasonably” adjusting the incomes of its top earners and increasing the incomes of lower-income groups, Xinhua wrote in a question-and-answer article on the Chinese economy.
The idea is to form an “olive-shaped” income distribution structure with a large middle and two small ends, Xinhua said.
But China’s tax policy should not be misinterpreted as “stealing from the rich to help the poor,” Xinhua said in the question-and-answer article, for which the agency said it interviewed “relevant departments. “and” persons of authority “.
“Common prosperity” is President Xi Jinping’s political will to close the gap between rich and poor. In an essay in the Communist Party newspaper Qiushi published by Xinhua this month, Xi urged China to “vigorously and steadily advance” property tax legislation.
The introduction of a property tax will be one of the most far-reaching changes to China’s real estate policies in a generation with far-reaching effects.
Such a tax discourages speculative buying and cools house prices which have jumped by more than 2,000% since the privatization of the housing market in the 1990s and created an accessibility crisis.
The tax will also pinch the relatively affluent homeowners of several homes whose properties have not been taxed for years.
On Saturday, the highest decision-making body of the Chinese parliament announced that it would implement a pilot property tax in some regions. (Reporting by Ryan Woo; Editing by Ana Nicolaci da Costa)

About Natalee Broderick

Natalee Broderick

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