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Lawmakers promote private business, ease taxes on poor
(AP)
Updated: 2005-10-27 21:50

China's top legislators on Thursday passed a package of new laws meant to promote the growth of private business and ease the tax burden on the poor.


A man walks past a sign advocating people to file tax returns in Shanghai in this undated photo. China's legislature adopted the revised personal income tax law, raising the threshold for tax payment to 1,600 yuan. [newsphoto]

The new legislation included extensive revisions of China's corporate, securities and income tax laws, spokesmen for the National People's Congress said at a news conference.

The measures come after the Communist Party issued an economic plan that promised to maintain fast growth while narrowing the explosive gap between China's rich and poor.

The new laws include measures to improve protections for the rights of small private investors, said Zhou Zhengqing, deputy head of the NPC Finance and Economic Committee.

The revisions will "promote the healthy and stable development of China's capital markets, minimize risk, guarantee the safe operations of the capital markets and strengthen the protection of the rights of investors," Zhou said.

"These revisions will be good news for the securities market in the long run," Zhou said.

Legislators also agreed to cut income taxes on the country's poorest.

Chinese who make less than 1,600 yuan a month (US$198) will no longer need to pay income tax, up from the previous cutoff point of 800 yuan (US$98), said Lou Jiwei, head of the State Council Financial and Banking Office.



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