Now is the time to cut taxes, say economists

The nation's ballooning State coffers offer an opportunity for tax cuts, which would benefit both enterprises and residents trying to cope with a slowing world economy and rising inflation.

"Now it's the time to cut taxes," said Bai Chong'en, professor of the Economics Department of Tsinghua University at a recent forum organized by the National Bureau of Statistics. "The move could both help mitigate the inflationary pressure and help maintain a steady economic growth."

China has enjoyed brisk fiscal revenue growth over the years, thanks to its booming enterprises and the growing affluence of its residents. The government's fiscal revenue grew 33.3 percent year-on-year to 3.48 trillion yuan in the first half, much faster than the government's projected increase of 14 percent for the whole year.