Highlights of China's income distribution reform plan(2)

GOVERNMENT EMPLOYEES, OFFICIALS

-- The staff scale of central and local governments will not be increased and the number of leadership positions will be reduced in the 2011-2015 period.

-- Government spending on receptions, car purchases and use as well as officials' overseas tours will be rigorously controlled.

-- Rules demanding government officials report their income, real estate assets, investment and family members' jobs will be implemented more strictly.

-- Grass-roots civil servants' salaries will be raised properly and those working in poorly developed and remote regions will have higher allowances.

TAXATION

-- The government will gradually expand experimental property taxes and strengthen taxation on second-hand property transactions.

-- Consumption taxes will be imposed on some high-end entertainment activities and luxury products.

-- Studies will be conducted on introducing inheritance taxes at an appropriate time.

-- Foreign individuals will no longer be exempt from personal income taxes on stock dividends and bonuses they obtain from foreign-funded enterprises in China.

-- Structural tax reductions will be promoted to cut the tax burden on low- and middle-income earners and small enterprises.

FINANCIAL SECTOR

-- Regulation will be strengthened to demand more listed companies pay dividends to individual investors.

-- Reforms will be advanced to make banks' interest rates more market-oriented and loan and deposit interest rates will be allowed to move in a properly wider range so as to protect the interests of savers.