Wang was reporting on the implementation of China's national economic and social development plan to legislators attending the 29th Session of the Standing Committee of the Ninth National People's Congress.

The government move is aimed at increasing State revenue while strictly controlling State spending.

The state financial revenue in the first seven months of the year grew by 10.6 percent year on year. Wang said it was slower than expected, although gross national product achieved the expected growth rate of 7.8 percent in the first half-year.

Wang said various factors contributed to the slower growth of State revenue, including the axing of tariffs after China joined the World Trade Organization.

Elaborating on specific measures to increase state revenue, Wang said the tax authorities would closely supervise individuals, all kinds of enterprises and key commodities that are a source of taxation.

The authorities will carefully sort out those who have evaded tax, try to put all taxpayers under the supervision of the taxation authorities, and strengthen supervision of the collection of personal income tax from people with a high income.

Priority in supervision will be given to import and export duties and tax, value-added tax and consumer tax and to tax collection involving foreign parties.

Wang said the central government will revise current preferential tax policies and correct any policies created by government departments and local authorities that do not comply with the Taxation Law.

(China Daily August 28, 2002)