Tax incentives should be 'fair', minister says

China will make a greater effort to clean up regional tax incentives in order to ensure that the allocation of resources is determined by market rather than by a variety of regional incentives.

Finance Minister Lou Jiwei said at a news conference for the 2nd Session of the 12th National People's Congress on Thursday in Beijing that provinces and municipalities had introduced excessive regional tax incentives, resulting in unfair competition and confusion.

Competition should be fair, based on the principle that markets play a decisive role in allocating resources, Lou said.

Lou said China committed to fight against "Tax Base Erosion and Profit Shifting" at a recent meeting of the G20 Finance Ministers and Central Bank Governors, and the regional tax incentives are not consistent with the spirit of China's commitment.