Central bank further supports grass-root finance

The Central Bank indicates it will further strengthen the grass root finance, and considers to introduce the relevant regulations into the General Provisions of Loans, which has been revised simultaneously.  Ministry of Finance states that the value added tax rate is not proper to be cut further in coal and other mineral products, and says the making of regulations is on the way on the charges and funds levied on coal production and sale. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

During the processing of the “Two Congress” in 2009, 22 members of CPPCC said in their proposals, it should be devoted to develop grass root finance as to promote grass-root economy and rural or urban job-supply. They also advised to set up a joint committee headed by the central bank and CBRC in directing the related works.

Early in 2008 the central bank organized and carries out the small loan trials respectively in several provinces and directly-governed municipalities. And it will continue the work, creating better conditions with other related sections to promote grass-root finance in the coming years.

Some other members of CPPCC say in the proposals to pursue continually the 13 percent benefited value added rate and promote actively the reform of taxes and funds charged on coal production. The replies from the Ministry of Finance and the State Administration of Taxes suggest they intend to enhance the work on tax reform and will further contract the range of goods that applicable to lower tax rate, in this case, 13 percent will be the normal proportion maintained at coal and mineral products. In addition, the two departments indicate to resolutely cancel all funds charged beyond the approved authority.