March 7
Xiao Jie, minister of finance
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Finance Minister Xiao Jie attends a press conference on fiscal and tax reform in Beijing on March 7, 2017. [Photo/Xinhua] |
On income tax
At present the reform plan of the individual income tax is under study and review. The general idea is to proceed from ground reality and integrate comprehensive and classified taxation systems.
The overall design and implementation will be carried out step by step in order to establish an individual income tax regime that suits the country's situation.
On deficit ratio
China's fiscal deficit ratio of 3 percent of GDP is proactive and there is no need for concern about any default on debt repayments given China's continually improving economic fundamentals.
The ratio is unchanged from that of last year, but the scale expanded by about 200 billion yuan ($29 billion) given the rise in GDP this year.
The scale is adequate for satisfying the demand for tax cuts and investment in major economic areas. The country's debt ratio is low compared with other countries.
