Earlier, Vice-Premier Li Lanqing delivered a keynote address on China's economic development to Summit participants. In his presentation, Cheng explained that fiscal reform started in 1994. Government income from taxation is now growing in line with GDP growth. The government is aiming, among other objectives, to improve enforcement of tax laws and to ensure that revenues from taxes are used productively. Asked by a delegate from a petrochemical company about the conversion of fees into taxes, Cheng said that the process is complicated.
Fees still account for a large share of government revenue.
The government had to carefully identify which set of fees were worth converting into tax charges, which had to be retained and which should be abolished. Finally, Cheng said that efforts to unify the taxation system would take several years to achieve. The goal is to offer national treatment to foreign ventures, meaning that joint-venture companies would face the same taxation rules as local firms. While foreign ventures might then lose tax holiday options, according them national treatment would encourage fair competition and be beneficial in the long run. The World Economic Forum is the foremost international membership organization integrating leaders from business, government and academia into a partnership committed to improving the state of the world.