BEIJING (Reuters) – China will “strengthen adjustments” in tax collection to increase revenue and reform the country’s income distribution, but in a targeted and precise manner, as part of efforts to achieve long-term “common prosperity”, said the state news agency Xinhua.
China intends to “split the pie” by “reasonably” adjusting the income of the richest and raising the income of the poorest groups, Xinhua wrote in a question-and-answer article on the Chinese economy.
But China’s tax policy should not be misinterpreted as something that “steals from the rich to help the poor,” Xinhua said in the question-and-answer article, for which the agency said it interviewed “relevant departments” and “people authorized”.
“Common prosperity” is a policy of President Xi Jinping that seeks to bridge the gap between rich and poor. In an article in the Communist Party newspaper Qiushi, published by Xinhua this month, Xi urged China to “move forward with vigor and firmness” with property tax legislation.
(by Ryan Woo)
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