Tax distribution formula reworked for fiscal parity

Tax income distribution between the central and local governments has been rebalanced to ensure that the slew of planned tax and fee cuts will not drag some regions into financial problems, according to a statement from the State Council, the country's cabinet.

Under the new plan, value-added tax income for the central and local governments has been fixed at 50 percent each, compared with 75 percent for the central government before VAT reforms in 2016.

The equitable sharing system will ensure that the local governments get a stable tax income, said a government statement released on Wednesday.