China Embarks on Comprehensive Tax Reform

China is set to reform its consumption tax system and standardize local governments' non-tax revenues. Vice Finance Minister Wang Dongwei emphasized deeper fiscal and tax reforms. Local administrations will gradually retain more of the consumption tax revenue, currently centralized, as per recent Communist Party directives.

China is set to undertake a step-by-step reform of its consumption tax system and standardize the management of local governments' non-tax revenues, announced Vice Finance Minister Wang Dongwei during a press conference in Beijing on Wednesday.

In addition to these adjustments, the country will also strengthen fiscal policy measures and deepen fiscal and tax reforms, Wang noted.

This follows a Communist Party meeting earlier this month where it was decided that local administrations will gradually be entitled to retain a larger share of the consumption tax revenue. Presently, this tax is transferred entirely to the central government and comprises nearly a tenth of total revenue.

(With inputs from agencies.)