Source: CCTV.com

03-06-2009 13:56

Special Report:   Global Financial Crisis
Special Report:   2009 NPC & CPPCC Sessions

Video: Press conference on Chinese economy (Part 1) (Part 2)

China's finance minister Xie Xuren said the government's tax cuts policies this year will reduce around 500 billion yuan worth of tax burdens on enterprises and individuals. The minister made the remarks also at the joint press conference. He also said in a bid to tide over the crisis, the central government has attached great importance to adopt proactive fiscal policies this year.

Xie Xuren, Minister of Ministry of Finance

Finance minister Xie Xuren said since the fourth quarter of last year, the central government had attached great importance to adopt proactive fiscal policy. He said positive fiscal policies are of vital importance to boost the economic development in China and help tackle the current financial crisis worldwide.

The policy has mainly focused on five aspects. The first is to expand government's public investment and enhance construction of key projects. The central government will allocate 908 billion yuan for public investment this year. That's 487.5 billion yuan more than last year's budget.

The fiscal policies will also focus on tax reforms. The government will work on to push forward fuel tax reform and boost energy saving and emission reduction. A total of 100 administrative fees will be halted and abolished.

Xie Xuren said the tax reduction policies is expected to ease around 500 billion yuan worth of tax burdens of companies and individuals.

Xie Xuren, Minister of Ministry of Finance said "With the implementation of the proactive fiscal policy and other measures all together with efforts by the public, I think these policies will for sure boost the steady and rapid growth of the country's economy. And in turn, it will establish a solid foundation for steady growth in fiscal revenue."

In addition, Xie Xuren said the central government will also increase low-income people's earning and greatly stimulate domestic demand. This year will see further increase in farmers' subsidies. Other measures include optimizing financial spending to guarantee and improve people's livelihood, enhancing support to technological innovations and accelerating adjustments of economic structure as well as growth pattern.

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Editor:Xiong Qu