China mulls lower tax levels to boost long-term investment
2012-10-29 16:55:00
China may apply a sliding scale to taxing stock dividends in a bid to encourage long-term investment, the China Securities Journal reported on Monday, citing unidentified government officials.
Under the proposal, investors holding a stock for more than a month would gain preferential tax treatment, while holding a stock for more than a year would win deeper tax cuts, the newspaper said.
The government was also studying tax policies in relation to Qualified Foreign Institutional Investors (QFII) and the trading of crude oil futures, it said.
China's government has rolled out a series of measures recently in an effort to stabilise the stock market, which has fallen 6 per cent so far this year following a 22 per cent slump in 2011.