Chinese lawmakers get taxing rights

BEIJING, June 29 (UPI) -- China's legislature Friday authorized the State Council to reduce or cancel tax on bank deposit interest.

The Standing Committee of the National People's Congress also gave the green light for a massive sale of special T-bonds and authorized the ministry of finance to issue about $204 billion in T-bonds for a state investment company.

Analysts expect the State Council to initially halve the current tax rate to 10 percent, the China Daily reported. Should inflation continue to grow, then the Cabinet could cancel the tax completely.

China began collecting interest tax in 1999.