China to Further Reform Fiscal-Tax Systems

Finance Minister Xie Xuren said Sunday China will further deepen the reforms to its fiscal and tax systems to enhance transparency of fiscal budgets and improve tax policies.

The nation will strive to promote budgetary policies to cover county-level areas this year and strengthen the regulation and transparency of government funds, Xie said at the China Development Forum.

Meanwhile, the country is mulling to increase the proportion of underlying tax, which is smaller compared with circulation tax under the current Chinese taxation system, Xie said.

The underlying tax includes income tax of individuals and corporate business income tax, while the circulation tax covers the VAT, turnover tax, and consumption tax.

Further, China will expand trials of replacing turnover tax with VAT in a bid to boost the development of the tertiary industry, according to the minister.