Less tax, better growth

Strong fiscal revenue growth has long been deemed as solid evidence of the Chinese economy's resilience as last year's double-digit increase in fiscal revenue clearly shows.

But if China is to boost consumer-led growth by improving income distribution, policymakers must take another examination at the current rise in fiscal revenues.

Yes, more taxes do enable the government to better finance public investment and expand public services. But a bigger tax burden can also undermine the country's endeavor to change its growth model by relying more on domestic spending than on investment and export for growth.