China to consider seriously adjustment of taxation policy in capital market_English

Special Report: NPC, CPPCC Annual Sessions 2008

Chinese Finance Minister Xie Xuren answers a question during a press conference on economic and social development and macroeconomic regulation held by the First Session of the 11th National People's Congress (NPC) at the Great Hall of the People in Beijing, capital of China, March 6, 2008.

Chinese Finance Minister Xie Xuren answers a question during a press conference on economic and social development and macroeconomic regulation held by the First Session of the 11th National People's Congress (NPC) at the Great Hall of the People in Beijing, capital of China, March 6, 2008. (Xinhua Photo)
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BEIJING, March 6 (Xinhua) -- The Chinese government will seriously consider adjustment of taxation policy in the capital market, said Finance Minister Xie Xuren here on Thursday.

"We have taken notice of comments on the Internet regarding the adjustment of capital market taxation, and we are seriously considering it," said Xie at a press conference held on the sidelines of the annual parliament session in response to a question about whether the government will reduce the stock trade stamp tax.

Capital market has played an important role in China's domestic economy, and the government pays close attention to the question, the minister noted.

He said the Finance Ministry will research with other related departments on current situation of the capital market to work out relevant policies.

On May 29 last year, the Chinese government increased stamp tax on securities transactions by a great margin. This resulted in a big drop in the stock market, which, however, soon restored an upward trend.

Debate on adjustment of the taxation policy started again recently as the stock market began dipping since last November, despite several upturns which failed to turn the scale.