China Should Improve Local Tax Reform

China should improve the local tax system to boost local government income as the old model of heavy reliance on land-sale revenue and transfer payments from higher-level governments is unsustainable, 21st Century Business Herald reported citing analysts. It is high time to promote reform of consumption tax, including giving local governments more tax collection authority and adjusting the scope of taxable items and tax rates, said Sun Kunpeng, associate professor at Central University of Finance and Economics. The Central Economic Work Conference in December indicated a new round of fiscal and taxation reform will begin soon.