BEIJING Oct 10 China will increase government
spending and offer tax breaks to quicken the development of the
country's urban public transport system, the cabinet said at a
regular meeting on Wednesday.
The move aims to relieve worsening traffic congestion and
air pollution in cities, the State Council, or China's cabinet,
said at the meeting chaired by Premier Wen Jiabao, according to
a statement published on the government's website.
China has announced a number of new infrastructure spending
plans to help shore up a slowing economy, but has provided
little detail on how they will be funded.
"Nowadays, the urban public transport system can no longer
satisfy people's demand and lags behind economic and social
development," the statement said.
"Therefore, we should make it a priority to develop the
public transport network in cities," it said, adding that the
system would incorporate buses, subways and tramcars.
Those companies involved in the construction or operation of
public transport systems will be offered tax cuts and
preferential prices on power and fuel.
Beijing will also channel private sector funds to invest in
infrastructure related to urban public transport, it added.
Earlier this year, China opened a number of state-dominated
sectors -- including many infrastructure projects -- to
investment by private capital.
The latest announcement only provided a broad policy
guideline without further elaboration.
(Reporting by Aileen Wang and Lucy Hornby; Editing by Jeremy