China to further boost domestic consumption in 2010: State Council

20:58, December 09, 2009      

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China's State Council said Wednesday that the government will continue to tap into the domestic market for a stable and relatively rapid economic growth next year.

Policies to boost consumption will be further strengthened and most of the current policies will be continued, according to an executive meeting of the State Council, chaired by Premier Wen Jiabao.

China will continue to expand domestic consumption next year and especially to highlight consumption's role in boosting economic growth, as China's economy will still face many challenges next year, according to the meeting.

Policies to subsidize rural households to buy electric appliances will be continued next year and policies to subsidize rural households to buy automobiles will be prolonged to the end of next year.

After home appliance replacement ended trial operation in May next year, the policies will be fully carried out and further promoted. Measures to subsidize agricultural equipment will be continued.

Policies to reduce purchase tax on passenger cars will be continued but adjusted to 7.5 percent for models with engine displacements of less than 1.6 liters. (Link)

A policy was allowed to expire that had eliminated the turnover tax for those who sold homes they had owned for more than two years. From now on, the tax will instead be waived only for those selling homes they have owned at least five years. (Link)

The central government has implemented a series of policies in improving people's living standards and promoting consumption since the fourth quarter in 2008 to fight the global financial crisis.

The policies have effectively tapped consumption potentials and boosted China's economic recovery, according to the meeting.

The meeting also issued a guideline on trial operation of social insurance fund budget to put social insurance fund under government budget management.

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