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China Daily Website

China unveils reform guidelines on income distribution

Updated: 2013-02-06 09:06
( Xinhua)

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Meanwhile, the country is aiming at officials, State-owned enterprises (SOE) and wealthy individuals in its bid to strengthen regulation of the high-income group.

Rules that demand government officials report their income, real estate assets, investment and family members' jobs will be implemented more strictly, the guidelines said.

SOEs must impose ceilings on payments to their senior management who are appointed by the state and make sure senior staff's salary growth is slower than the average level for general employees.

The percentage of profits that central SOEs have to hand in to the government will be increased by around 5 percentage points by 2015 from the current level and the added income will go to social security.

The guidelines also proposed keeping the staff scale of central and local governments from growing in the 2011-2015 period and rigorously controlling government spending on receptions, car purchases and driving as well as overseas tours.

To tax the rich more, the government will expand experimental property taxes gradually, collect consumption taxes on more high-end entertainment activities and luxury products, and study imposing inheritance taxes "at an appropriate time."

In the meantime, foreign individuals will no longer be exempt from personal income taxes on stock dividends and bonuses they obtain from foreign-funded enterprises in China, according to the guidelines.

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