High-stake tax reform aims at balanced development across provinces

BEIJING - China is pushing forward reforms on the fiscal powers of central and local governments with a high-stake action plan on some of the country's most important taxes.

The State Council, China's Cabinet, has released a guideline to establish a fiscal relationship between the central and local governments built upon clearly defined powers and responsibilities, appropriate financial resource allocation and greater balance between regions.

The document clarified that the country will maintain the equal split of value-added tax (VAT) revenues between the central and local governments to stabilize expectations and encourage local governments to develop competitive industries and expand tax sources.