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  2007 NPC

Lawmakers examine property, income tax law

(chinadaily.com.cn)
Updated: 2007-03-08 11:42

The draft property law and the enterprise income tax law were submitted to the National People's Congress, China's top legislature, for examination and approval.

The property law, if passed is expected to offer equal protection to the property of the State, the collective and the individual while the income tax law will unify the income tax for domestic and foreign-funded companies, putting an end to privileges enjoyed by foreign firms.

The long-awaited draft property law spelled out five aspects from which to protect the State-owned property, according to the explanation of the draft read out by Wang Zhaoguo, vice-chairman of the Standing Committee of the National People's Congress.

Any unit or individual will be held liable if found to cause loss of State-owned property by transferring it at a low price or by other means in the course of restructure of the enterprise, merger or division of the enterprise, according to the draft law.

The draft also singled out those in charge of the administration of and supervision over State-owned property. If the authorities and their staff members "cause loss of State-owned property due to their abuse of power or dereliction of their duties, they shall bear legal liability according to law."

What is widely welcomed in the draft is the protection of private property. "The lawful property of individual persons shall be protected by law, and illegally taking possession, looting and destruction of such property by any unit or individual is prohibited," stipulated the draft.

These stipulations are conducive to stimulating people's initiative to create and accumulate wealth and to promote social harmony, said the explanation.

The draft also emphasized the safeguarding of the interests of the large numbers of farmers.

 

 



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In the Limelight

Property law:
Explanation on China's draft property law

 

Corporate tax:
Explanation on China's draft enterprise income tax law

 

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