Will China’s ‘death tax’ cometh soon or late? Lawmakers have wealth redistribution in mind
Unlike many Western countries, China does not have estate and gift taxes, but that could change as a controversial motion is considered
Guo Shuqing, a veteran politician with an illustrious career spanning the state planning agency, central bank, and securities and banking regulatory commissions, is one of the National People’s Congress (NPC) deputies jointly pushing for the taxes, the National Business Daily economic publication reported on Monday.
A motion, according to NPC procedure, requires the backing of at least 30 deputies or the consent of a provincial-level delegation, and it must be reviewed by the NPC presidium for further action. No details have been provided by the top legislature yet.
Advancing income-distribution reform and improving the tax system could enhance wealth distribution and more effectively address the underlying issue of insufficient domestic demand, Guo was quoted as saying.
In the face of internal and external factors disrupting China’s economy, including tariffs imposed by the United States, Beijing has put the boosting of domestic demand high on its economic agenda for the year.
Guo is a prominent pro-reform figure who now serves as deputy director of the top legislature’s financial and economic affairs committee.