TIANJIN/SHENZHEN - The Chinese government should promote the reform of the fiscal and tax system during the 12th Five-Year Plan (2011-2015), especially regarding the personal income tax system, said a central bank adviser.
Li Daokui, an academic member of the central bank's monetary policy committee, was speaking at a financial forum in Tianjin, which was a warm-up for the 2010 China Central Television Businesses Leader of the Year Awards.
Wang Jianlin, chairman of the property developer Dalian Wanda Group, said the huge income gaps between different industries might be the most obvious problem in income distribution.
"Reform is needed for companies in trade-monopoly industries because they have enlarged the gaps by bringing more profits to their own employees rather than to the whole nation," he noted.
Also, "depending on the market, incomes in some industries, such as finance, are higher than the rest," Wang continued. "But they are expected to fall back to normal levels in the coming years."
Long Yongtu, secretary-general of the G20 Research Center in Tianjin, said that income is also closely related to people's sense of well-being. So "ensuring people have reasonable and deserved incomes is important."
At a similar forum held on Thursday in Shenzhen, the special economic zone neighboring Hong Kong, Le Sheng, deputy secretary of the Shenzhen Party Committee, said the city is planning to invest 40 billion yuan ($6 billion) to develop Qianhai area into a pilot zone for Guangdong-Hong Kong modern services industry cooperation.
Le said the new area in west Shenzhen will get a 40 billion yuan ($6 billion) investment from the local government in the next three years and will emphasize urban planning, system innovation and project attraction.
According to the blueprint, the new area will develop mostly finance, information, logistics, and professional services industries. It is expected to generate GDP of 150 billion yuan by 2020 with an area of 15 square kilometers
