CPPCC member urges reform of personal income tax system (03/03/2003)

A member of China's top advisory body said here Monday that there is an urgent need to reform the country's existing personal income tax system so as to address the widening gap between the rich and the poor.

Qu Shijing, a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), said the income gap is widening between high-income urban households and low-income ones, between urban and rural individuals, and between the eastern coastal areas and land-locked areas in central and western China.

The irrational tax system has resulted in the concentration of wealth in a small number of people, which is harmful to the sound development of the national economy and social stability, said Qu,who came from Shanghai to attend the First Session of the 10 CPPCC National Committee which began Monday afternoon.

"The insufficient purchasing power of low-income groups has weakened the role of domestic demand as a crucial propeller of economic growth," he said.

To revise the existing personal tax system, Qu suggested efforts be made to establish a progressive taxation system conforming to China's conditions and launch a nationwide publicitycampaign on citizens' obligations to pay taxes.

(People's Daily)