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China should reform the insurance taxation system to support the development of the insurance industry, said Li Kemu, vice chairman of the China Insurance Regulatory Commission.

 

Addressing the Insurance Texation International Seminar held on Tuesday in Beijing, Li said China should include insurance taxation reform into the country's general plan of taxation reform and initiate reforms on a trial and innovative basis.

 

Li said the policy insurance business is closely connected with the national economy and people's livelihood, and should be given certain tax favors.

 

"We should try to establish tax support policies for agriculture insurance, health insurance, medical insurance, liability insurance, catastrophic insurance and the investment of insurance assets," said Li.

 

Li noted that the tax support policies will also attract more foreign insurance companies to enter the country's insurance industry, adding there are 41 foreign insurers in China, of which 27 on the list of the world's 500 largest companies.

 

(Xinhua News Agency September 28, 2006)