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China Daily Website

Officials eye consumer, vehicle taxes

Updated: 2013-11-21 11:19
By Wei Tian in Shanghai ( China Daily)

"A lot of problems in China, such as social disparity and wasting of resources, have largely resulted from a mismatch between the current tax system and economic development," according to Lou.

To practice the "pillar role" of fiscal reform in running the country as required by the guideline, the finance minister vowed to build a taxation system that advances both social equity and market integration.

Among other reforms touched on by Lou, a new property tax - considered an effective way to regulate an overheated housing market and which began as a 2011 pilot program in Shanghai and Chongqing - will progress to legislation after thorough discussion, he said.

"The tax burden on the transaction and construction of a property will be eased, while that on the possession of a property will be increased," he said.

A higher tax rate also is likely for resource usage.

The assessment on oil and gas production was shifted to value from volume in a move to lift the tax rate and reduce waste, and Lou noted that the policy also will be applied to coal, which remains the largest energy source for China.

Meanwhile, taxes on other resources that are still levied on a volume base also will be raised, to replace fees that were charged on these resources, he said.

In a similar move, Lou said, the environmental protection fee will be shifted to taxation, in order to be levied in a more regulated manner.

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