During the 11th Five-Year Program period (2006 to 2010), the Ministry of
Finance will go all out to optimize investment and consumption
structure, said its minister Jin
Renqing in Beijing Saturday at a seminar on China's finance and
taxation.
Against the backdrop of relatively overheated investment and
downturn consumption, it is vital to optimize investment and
consumption structure and stimulate consumption so as to keep the
rapid and healthy economic development, he said.
He called for the rationalization of resources, labor force and
land prices, saying income of low-income people should be promoted
and the number of middle-income people should be increased.
Work on social security, education, technology and medical
services should be enhanced to make people dare to consume, said
he, also putting stress on increase of farmers' income and
optimization of industrial structure.
The Ministry of Finance will accelerate reform on value-added
tax, and unify the taxation system on domestic and overseas-funded
enterprises, so as to spur corporate independent innovation, he
said.
The government will use finance and tax policies to support
recycled economy and push forward the construction of
resource-saving and environment-friendly society, he said.
China's revenue this year is expected to exceed 3 trillion yuan
(US$370 billion), according to the ministry.
In 2004, revenue for the whole country accounted for 19.3
percent of gross domestic product (GDP), much higher than the 15
percent in 2000, showing the government has become more capable in
economic macro-control.
(Xinhua News Agency November 20, 2005)