China Adjusting Tax Policies To Help Economy ����Recent adjustments in some of China's tax policies were intended to improve the finance and tax management systems and to adjust them to the socialist market economy to maintain stable economic growth, a Finance Ministry official said January 12. ����The Ministry told a news conference last week that the tax rebate policy for overseas-backed enterprises that began at the end of 1993 has expired, and the "no levy, no rebate" policy for exports of these companies will be extended two years to the end of 2000. ����The import duty on textiles, toys, and forestry products will be lowered, and preferential policies for economic and technological development zones will be revised. ����The 5-year preferential tax policies for overseas-backed businesses have proven effective for rapid development and for adapting to the new revenue-sharing system, the official said, and the termination of those policies will not affect the overseas-funded enterprises, but will be conducive to making taxes more uniform for both domestic and overseas-backed enterprises to create a fairer environment. ����Duty cuts for textiles, toys, and forestry products are mainly meant for domestic industrial restructuring and improving the foreign trade structure, meaning that China is taking steps to open wider to the outside world and get more involved in international competition and cooperation, the official said. ����The revision of preferential tax policies for economic and technological development zones will be helpful in standardizing tax revenue distribution and in getting the zones to improve their money management. ���� ���� Economicnews 1999-01-13 Page2 Full Story in Chinese