China’s key plenum aims to fix decades-old tax revenue imbalance

BEIJING, June 20 (Reuters) – Long-touted changes to China’s tax system will focus on allowing local governments to retain more fiscal revenues, say policy advisers, widely seen by markets as an important step towards removing an immediate threat to financial stability.

Measures that redistribute income from central authorities to municipalities, curbing an addiction to land sales laid bare by China’s property crisis, will top the agenda of a leadership gathering in July, known as the third plenum, they said.