Chinese finance authorities will take steps to accelerate the establishment and improvement of a fiscal system compatible with the modernization drive, following arrangements made at the Third Plenary Session of the 20th CPC Central Committee, Minister of Finance Lan Fo'an said.
Lan said that since the 18th CPC National Congress, historic changes and overall reconstruction have been seen in many different areas. Driven by the comprehensive deepening of reform, the quality of China's economic development has been continuously improved, laying a solid foundation for China's modernization drive, the minister said.
"Standing at a new historical starting point, this plenary session deeply analyzed the new realities and new problems confronting efforts in advancing China's modernization, clarified the overall goal of further deepening reform in an all-round way, reviewed and adopted the Resolution, and put forward a series of strategic, forward-looking and pioneering major measures. It fully demonstrated our party's strong determination and historical responsibility to face challenges and carry out reforms to the end," Lan said.
The plenary session, which was held on July 15-18, clearly stated that the reform of the fiscal and taxation system should be deepened. Lan said that in order to accelerate the establishment and improvement of a fiscal system that is compatible with China's modernization, it is necessary to highlight the construction of a high-level socialist market economic system and the promotion of high-quality development while advancing it in a comprehensive and systematic manner.
"Specifically, we will promote reforms in three areas: First, improve the budget system, strengthen the financial support for major national strategic tasks and people's basic livelihood, and use precious fiscal funds in key areas of development and to meet the urgent needs of people. Second, improve the tax system and optimize the tax structure. We will study the tax system that is compatible with new business forms and improve the support mechanism for key areas and key links. Third, improve the fiscal relationship between central and local governments and increase local independent financial resources," Lan said.
"The Ministry of Finance will benchmark the decisions and arrangements of the Third Plenary Session of the 20th CPC Central Committee on fiscal and taxation system reform, scientifically formulate reform tasks, timetables, and priorities, and steadily promote fiscal and taxation system reform in stages and steps. In view of major difficulties and issues, we will organize in-depth research and solicit opinions widely to ensure that the results of these reforms are more tangible and accessible to the people," he said.
China to accelerate fiscal system reform to advance modernization: minister
