Experts cast doubt on tax cut rationale

China's tax system is a burden on companies and should be reformed, Liang Jianzhang, economist and co-founder of online travel service Ctrip.com argued at a recent symposium held at Tsinghua University.

He said his company, the country's largest travel website, paid its employees 10,000 yuan ($1,520) a month on average, but after tax deductions and social insurance payments this figure was reduced to less than 6,000 yuan.

Liang said taxes should be cut to benefit workers, but the idea was called into question by Gao Peiyong, director of the National Academy of Economic Strategy under the Chinese Academy of Social Sciences, who doubted whether ordinary consumers would benefit from such a move.