Reforms 'pivotal to growth'

However, Yang Weimin, vice-minister of the Office of the Central Leading Group on Financial and Economic Affairs of the Communist Party of China, who was also speaking at the conference, said that land supply is expected to remain limited, especially in first-tier cities such as Beijing, Shanghai and Guangzhou.

"The built-up area has taken up half of the urban area of these cities and cannot be further expanded," Yang said, adding that this has been the guiding theory for these cities since 2006.

But Gurria and Yang share some views on tax policies to guide the country toward a greener future.

Further improvements are needed in energy efficiency efforts and in reducing carbon-dioxide emissions, with carbon taxation preferable to emissions trading, Gurria said.

Energy conservation should also be encouraged, through higher excise duties on gasoline. Water prices should be raised for end-users, and levies and pollution taxes increased. Standards for motor vehicle emissions and fuel quality should be tightened, he added.

According to Yang, the rollout of the country's tax reform will start with changes to resource taxes, followed by the introduction of an environmental tax.

weitian@chinadaily.com.cn