China's tax rebates burden on local governments eased

The central government has planned to ease the fiscal burden of local governments by applying a new export tax rebates system in the latter half of the year.

The system, as sources with the Ministry of Finance revealed Monday, would take into consideration the wealth gap among different regions and allow local governments with capital shortfalls to pay a smaller proportion of the export tax rebates.

This measure was designed to defend the legitimate interests of export companies and to balance the economic development of different regions, they said.

A report released Monday by the Ministry of Finance shows that the first-half-year fiscal revenue of China totaled 1.6392 trillion yuan, up 14.6 percent year-on-year. The fiscal outlay over the same period was 1.2421 trillion yuan, up 15 percent year-on-year.

Besides, approximately 150.3 billion yuan of export tax rebates had been returned to export companies from January to June, a hike of 104.4 billion yuan over the same period of last year, said Tuesday's China Securities Daily.

Source: Xinhua