Bigger tax benefits proposed for donors

Lawmakers are proposing that increased tax reductions be given for charitable donations in order to encourage more contributions.

Su Xiaoyun, a member of the Standing Committee of the National People's Congress who also worked for civil affairs authorities for more than 10 years, said that tax benefits are key to improving a country's charitable sector.

"If someone or some organization cannot be given a tax deduction, the motivation to donate will be reduced," Sun said.

Lawmakers agreed to push forward the charity law as soon as possible. The draft proposal has been submitted to China's top legislature for first discussion. Wang Shengming, one of the drafters, said that more specific details about charitable tax benefits will be written into the nation's special tax laws.

Hong Changyou, one of the committee's members, also called to make clear in the draft how religious charitable activities should be developed.

It is estimated that donations from religious associations over the past five years was about 3 billion yuan ($482 million), Hong said, and included assistance following such massive earthquakes as those in Sichuan and Qinghai provinces.

"Religious charities are an important part of the industry, so it's a must to add an article that encourages religious associations to do charitable activities," he added.

The draft law also received a positive response from people involved with charities, such as Wang Ming, president of the NGO Research Institute at Tsinghua University, who said the legislation is a milestone in charitable business.

But Long Zhuangwei, another member of the committee, said that reducing taxes is just one way to improve the charitable industry.

Luo Wangshu contributed to this story.

caoyin@chinadaily.com.cn