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China strives to readjust income distribution to stop yawning gap

0 Comment(s)Print E-mail Xinhua, March 5, 2011
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Readjusting income distribution in a reasonable manner is both a long-term task and an urgent issue to address at present, Premier Wen Jiabao said Saturday in his government work report delivered at the parliamentary annual session.

According to Wen, three major measures will be taken in 2011: increasing the basic incomes of low-income people in both urban and rural areas, putting more effort into adjusting income distribution, and vigorously overhauling and standardizing income distribution.

"We will steadily increase the minimum wage of workers, basic pensions of enterprise retirees, and subsistence allowances for both urban and rural residents," Wen said, noting that a sound mechanism of regular pay raises for workers and strictly enforce the minimum wage system will be established.

The government will also raise the individual income tax threshold on salaries, reasonably adjust the tax rate structure, and genuinely reduce the tax burden on low- and middle-income people.

"We will effectively regulate excessively high incomes, strengthen the dual controls on total wages and wage scales in industries in which incomes are excessively high, and strictly standardize the management of executive pay and bonuses in SOEs and financial institutions," the premier said.

Wen added that illicit income will be resolutely prohibited and a system for monitoring income distribution will be quickly established.

"Through unremitting efforts, we will reverse the trend of a widening income gap as soon as possible and ensure that the people share more in the fruits of reform and development," he said.

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