A new blue paper on China’s fiscal policy calls for the acceleration of ongoing reforms of the tax system.
The Chinese Academy of Fiscal Sciences (中国财政科学研究院) recently released the “Fiscal Blue Paper: China Fiscal Policy Report (2019)” (财政蓝皮书：中国财政政策报告（2019）) in Beijing.
According to the report 2018 saw China employ active fiscal policy to “inject certainty” into the economic operation, social development and comprehensive reforms.
The Chinese government oversaw the vigorous implementation of tax and administrative fee cuts to help stabilise market expectations, as well as the strengthening of local government debt management and the prevention and dissolution of local government debt risk.
The report said that China needs to “further accelerate tax system reforms and complete established tax system reform tasks.”
This will include “active formulation of tax reduction policies, the implementation of substantive tax reductions, and the formation of a tax collection system with a standardised tax law, fair tax burdens and appropriate adjustments via further deepening of tax system reforms.”
Shi Yinghua (石英华), chair of the Macro-economic Research Center of the Chinese Academy of Fiscal Sciences, said that in 2019 fiscal policy will focus on reducing uncertainties in relation to economic operation and social development, and the implementation of large-scale tax reductions and fee cuts.
Other key themes will include the expansion of investment in “key areas and weak links;” effectively making use of the guiding role of government investment; innovation and improvement in policy tools for supporting the private economy, ongoing reform of basic public services, support for sustainable green development and support for targeted poverty alleviation.