Minister of Finance Jin Renqing says the government plans to implement a new income tax policy in which foreign companies and local companies will be taxed at the same rate.

China currently has two different tax rates with foreign companies being taxed at 11 per cent, about half that of local companies who are taxed at 23 per cent, China Radio International reported Monday.

Jin Renqing announced the government's plans for the new tax policy at the World Industrial and Commercial Organization Summit which opened in Beijing on September the 19th.

He says the policy will help industrial and commercial companies develop.

Vice premier Huang Ju attended the opening ceremony of the two day summit.