NPC should reduce taxes to benefit the people: deputy
XinhuaBEIJING -- Taking practical efforts to cut various taxed categories and tax rates will benefit both the people and enterprises, Zong Qinghou, a deputy to China's National People's Congress (NPC), suggested ahead of the opening of China's annual two-session conference.
March 3, 2012, 12:09 am TWN
Zong, who is also the board chairman of country's leading beverage producer Wahaha Group, thought that the tax reduction will, on the one hand, improve Chinese enterprises' competitiveness and risk-resisting ability in combat with their foreign rivals; and on the other hand, it will optimize the distribution structure, raise employees' income so as to gear up the domestic consumption. In return, rallied home demand will promote the development of local enterprises.
China's high and miscellaneous taxes have been putting heavy burdens on local enterprises, especially for the mid and small-sized ones, said Zong. Statistics from the Ministry of finance showed that China's fiscal revenues totaled 10.374 trillion yuan in 2011, up 24.8 percent year on year, while the gross domestic product (GDP) and the real per capital disposable income of urban citizens grew only 9.2 percent and 8.4 percent year on year respectively.
Zong also called for further reform on personal income tax, of which the taxing threshold has been raised to 3,500 yuan starting from September 2011.
Besides, he advised that the governmental investment should be cut down or even canceled in a bid to break market monopoly and improve the fairness and transparency of market operation.
China's two annual sessions, the Fifth Session of the National Committee of the 11th Chinese People's Political Consultative Conference (CPPCC), the national advisory body, and the Fifth Session of the 11th National People's Congress (NPC), the national legislature, will respectively open on March 3 and March 5.