China to Accelerate Resource Tax Reform

China will advance the implementation of resources tax reform as early as possible, while also improving the personal income tax system and studying the possibilities of a levy on environmental tax and property tax, Wang Jun, Vice Minister of Finance, noted on June 11.

Wang stressed that following the implementation of a stimulus package involving tax policies, signs that the Chinese economy is stabilizing and recovering have appeared. However, many uncertainties and unexpected risks still exist.

China will seize the opportunity of slowed economic growth and low resource product prices to advance the implementation of a resources tax reform as early as possible so as to improve the pricing mechanism of resource products and meet requirements for resource conservation and environmental protection.

Not only will this reform increase fiscal revenues from areas rich in resources, to a certain extent it will also contribute to the financial security of China's central and western regions.

In addition, China will also accelerate the adjustment of environment-related tax and fee systems, and study the possibility of a levy on environmental tax.

Wang said it is necessary to unify the system of urban maintenance and construction tax levied on domestic and foreign-funded enterprises as well as on individuals. The plan for real estate tax reform should be further improved, and the possibility of a levy on property tax should be studied.

Wang added that China will also study and promote the personal income tax system to combine consolidated personal income tax and classified personal income tax.