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WTO Brings Opportunities for Fiscal Reform: Official

China's entry into the World Trade Organization (WTO) will enable the continuous and stable growth of the national fiscal income and also offers opportunities to reform the finance and taxation system, said Lou Jiwei, vice minister of finance, here Sunday morning.

Speaking at the 2002 annual meeting of the China Development Forum, which opened here Sunday morning, Lou pledged that China would seize opportunities to adjust its financial and taxation policies, further fiscal reform and strengthen fiscal administration to promote the sustainable development of its economy and fiscal affairs.

The economic impact of China's WTO entry would reflect on the national fiscal income and expenditure, but in the long view, the accession would help to accelerate China's reform and opening-up process and promote the long-term and stable growth of China's economy.

China would continue to modify its fiscal and tax laws and regulations to harmonize them with the WTO rules. New laws in this regard would also be established to standardize administrative examination and ratification functions, according to Lou.

The Ministry of Finance would publish all future policies and regulations to enhance the transparency of fiscal work, which was required by international practice, Lou said. China would also re-examine and regulate the existing financial preferential and subsidy policies, he added.

Gradual reduction in tariffs was an important commitment by China to the WTO. China had been reducing tariffs on some 5,300 taxation items since the start of the year, and had established four different tax rates, according to Lou, who stressed that by 2005, China's tariff level would have been reduced to 10 percent of the current level as promised.

(Xinhua News Agency March 25, 2002)


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