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Finance Minister Jin Renqing said Friday that if the top legislature approves unified domestic and foreign-funded enterprise taxation, the government revenue will drop about 100 billion yuan (US$12.5 billion) annually.

In view of the fact that fiscal revenue grew very fast in the past two years, the unified enterprise income tax rate for domestic and foreign-funded companies at 25 percent is to create a sound environment for enterprises, Jin said.

"Our goal is to improve enterprises so as to improve the general economy," Jin told a press conference held on the sidelines of the annual session of the National People's Congress (NPC), China's top legislature.

China's fiscal revenue increased 24 percent while the economic growth rate was 10.7 percent in 2006.

(Xinhua News Agency March 9, 2007)