China plans tax delay to boost investment. Reuters SHANGHAI, June 28 (Reuters) - China is likely to introduce preferential tax policies on pension funds within the year aimedat spurring investment in equity and bond markets, the state-backed China Securities Journal said on Thursday.The government hopes the new scheme will beef up China's pension system and cut the public cost of supporting the ageing population. Economists estimate that the gap between future liabilities and assets of China's pension funds now stands at 18.3 trillion yuan ($2.87 trillion).
The proposed tax break is intended to encourage pension funds - especially corporate pension funds and commercial annuity funds - to invest more in domestic bonds and equities, the paper said.
It added that the new measure will most likely be a tax delay, but did not say what proportion of tax bills will be postponed or the length of the proposed deferment. ... Continue to read.
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