China to tax rich more, cap executive pays to cut wealth gap
- PM in Paris: 'We must create a balance between economy and ecology'
- PM Modi meets Nawaz Sharif at UN climate summit in Paris
- Congress raises Dadri, Kalburgi killing in Lok Sabha; BJP hits back
- Petrol price cut by 58 paise per litre, diesel 25 paise
- India's economic growth accelerates to 7.4 per cent in July-September
In a bid to address widening wealth gap, China has unveiled a major plan to reform its income distribution mechanism, proposing to tax the rich and state units more besides imposing caps on salaries of top managers while increasing lower staff pay.
The reform will focus on increasing residents' income, narrowing income distribution disparity and regulate distribution order, a statement issued by the China's cabinet, which approved the 35-point blue print, said.
As per the reform plan, the government will work to double the average real income of urban and rural residents by 2020 from the 2010 level and facilitate the poor to enjoy faster income growth.
The reform also targets raising the proportion of residents' income in the overall national income and spending more government funds on social security and employment.
However the statement said, "deepening the income distribution reform is a systematic project that is arduous and complicated and concerns the reallocation of various interests. There is no way to accomplish it overnight".
The income reform plan was approved as China saw its income gap between new rich and poor was yawning, even with its economy emerging as second-largest in the world.
The Gini coefficient, a rich-poor index, reached 0.474 in China in 2012, higher than the warning level of 0.4 set by the United Nations.
The reform plan was announced as wealth gap was identified as major threat to the ruling Communist Party of China's hold on power.
It came a month ahead of the one-in-a-decade power transfer under which new administration headed by CPC new leader Xi Jinping would take over power from next month replacing Hu Jintao.
The new guidelines offer directions on an extensive range of policy areas such as taxation, subsidies, salary system, financial regulation, household registration and social security.
- Under General Sharif, Pakistan army is carrying low-intensity war against diversity of opinion
- Framed at BJP’s Diwali milan: Selfie-Made Journalism
- Raja-Mandala: Modi’s multilateral moment
- The politics of peace
- Ahead of the Paris summit, India has been again targeted as a spoiler
- Shunning coal not viable for India; World needs to come together to make it cleaner