Tax, land central to city's plan
By Jiao Xiaoyang (China Daily)
Updated: 2008-03-14 07:15

Chongqing, the country's most populous city with 32 million people, is betting on tax policies and land expansion to drive its development into the next decade.

The plan: To retain excessive tax revenue over last year's levels till 2020, continue a 15 percent preferential income tax rate - compared with the standard 33 percent rate - for targeted businesses until that time, and to add hundreds of square kilometers of land for development.

The Chongqing delegation to the National People's Congress session has unanimously passed a motion calling for the central government to approve the above proposals.

Local policymakers believe the bill will facilitate Chongqing's ambition to be an economic hub in west China.

"The preferential tax rate will help us attract good companies, whereas the retained tax revenue will enable us to improve public services and upgrade infrastructure," Huang Qifan, executive vice-mayor of Chongqing, told China Daily.

"The central government's support will translate into sustained growth for Chongqing in the next decade and I believe that, by 2020, Chongqing will take its place as western China's economic hub, in line with central government expectations," Huang said.

Residents are expecting more policies - similar to those implemented in Shenzhen and Shanghai's Pudong district - to make the city more urbanized, cosmopolitan and service-oriented.

The municipality is also applying to open a 6-sq-km bonded zone, aimed at becoming the most sophisticated bonded area in west China and boosting international trade in neighboring provinces, Huang said.

(China Daily 03/14/2008 page5)