Corporations and individual donors will now be able to claim tax deductions for donations to any licensed non-profit public welfare organization.

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The new policy was announced by the Ministry of Finance and the State Administration of Taxation on Friday.

In the meantime, the draft of the country's first law on charity is expected to be presented to the top legislature for examination and approval later this year.

At present only donations to about 20 major charity organizations are tax deductible, according to a policy issued last year.

But Ge Daosheng, a researcher at the Chinese Academy of Social Sciences' Institute of Sociology, doubted whether the policy could be faithfully carried out at all levels.

"The procedures for donors to claim deductions in taxes are often extremely complicated in many places," Ge said.

Experts have called for legislative transparency and less government involvement in charity activities.

The Ministry of Civil Affairs, which has overall responsibility for the nation's charity affairs, said on Wednesday it had finished drafting the Law of Charity and would submit it to the National People's Congress for examination.

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