MNI EXCLUSIVE: Bigger Tax Cuts Expected: China Govt Advisor

     BEIJING (MNI) - China is expected to unveil a package of taxi cuts next

year to boost the economy, bigger than this year's total of CNY1.3 trillion, a

top policy advisor at the Ministry of Finance told MNI in an exclusive interview

on Tuesday. 

     At the same time, fiscal spending will be limited as the tax reductions are

implemented, Liu Shangxi, the director of the Research Institute for Fiscal

Science under the Ministry of Finance, said in Beijing before a ceremony

commemorating the 40th anniversary of China's reform and opening policy.

     Liu spoke after a statement issued by state media last week following a

meeting of the politburo of the ruling Communist Party of China, calling for

increasing market confidence, boosting domestic consumption, and reduction of

businesses' burdens.

     The tax cuts will be "at least bigger than this year's," Liu said. "You

cannot do two at the same time," said Liu, referring to the two possible

measures of cutting taxes and boosting spending. 

     The government may not finalize policies until early next year, Liu

cautioned. 

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com

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