People In The Know

Tax income is a barometer of the macro-economy. True, but partly true. The tax system also means incentives for economic transformation and industrial restructuring and for social development, depending on who pays what, and pays more. To look ahead at what changes are needed, we first look back at what's already been done in the past five years. That way we may know more precisely the reform measures needed in the two-tiered administrative mechanism, so that tax is more compatible with the national economy now, and with its development tendency. For this and more, my colleague Jingnan talks with Professor Yan Xu, Assistant Professor in the Faculty of Law, and Director of the Center for Financial Regulation and Economic Development, at the Chinese University of Hong Kong. Despite all odds lying ahead, each small step gained in the tax reform helps. But what does it mean to individuals, who may earn a low income, own a property or a small enterprise when they hear top leaders promise to ease