The Chinese government is to raise tax rates in new regulations on taxes on urban land use, in a bid to strengthen the macro-economic control policies.

In a meeting presided over by Premier Wen Jiabao on Saturday, the State Council, or China's cabinet, decided to amend the provisional regulations on taxes on urban land use issued in 1988.

Unified tax rates will be applied to domestic and foreign companies to foster fair competition.

China's economy grew 10.7 percent in the first three quarters this year, with fixed assets investment surging 27.3 percent.

The government believes checking excessive growth of credit and land supply could be an effective way of cooling the economy.

Measures have been taken to tighten land supply in the second half, including higher taxes on urban land use and stripping local governments of their authority to spend the money from land sales.

Source: Xinhua