Proposed system for tax collection to ease burdens

The State Council, China's cabinet, unveiled a plan on Thursday to reform the country's tax-collection system. The plan is expected to end the long-standing brawl between State and local tax administrations and reduce the agonies of companies, including multinationals in China.

The plan stops short of combining parallel tax collection systems into one, an idea long advocated by some experts. Instead, the divided structure will be retained, while each system's responsibilities will be further clarified and e-platform-based cooperation will be promoted.

The plan is an assurance for China's 800,000-strong tax collection army that for years has feared possible streamlining would mean massive layoffs, analysts said.