Reported 8 months ago
China's upcoming third plenum leadership gathering in July is set to focus on redistributing income from central authorities to municipalities to address the imbalance in tax revenue. The reforms aim to alleviate concerns over local government debt, which poses risks to financial stability. Proposals include allowing local governments to retain more fiscal revenue, particularly from consumption taxes, to curb the dependence on unsustainable practices like land sales that have contributed to a housing bubble. The reforms also involve measures to balance revenues and expenditures and align local governments' spending with their fiscal capacity.
Source: YAHOO