China To Increase Taxes On The Rich

China plans to levy consumption taxes on more luxury goods and may expand a pilot property tax beyond Shanghai and Chongqing as it moves to reform the world’s second-largest economy.

The official Xinhua news agency cited Finance Minister Lou Jiwei as saying Wednesday that the nation would levy consumption tax on goods that result in exploitation of resources and environmental damage.

Lou made the remarks during a session of the standing committee of the National People’s Congress, China’s parliament.

Pushing a strong reform line, China’s leaders are looking to reshape the economy to one driven more by consumers than by exports, big industries and credit.

The ruling party will hold a key meeting in November that will set China’s economic agenda for the next decade, with tax reform likely to be a priority.

CNBC

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