"Comprehensive tax levying" will help to narrow the gap between the rich and the poor in China. [Photo: Xinhua]

Each Chinese citizen will have one personal tax identification number in the future, and it will be valid for all of his or her life, according to Legislative Affairs Office of the State Council of China.

Each taxpayer will have all his tax information gathered in a tax file. This will make it easier to remove the loopholes in the individual income taxation system, which gives convenience to tax evaders.

The tax identification number must be provided in the future in any economic activity concerning contracts, deal or agreement.

The move aims to practice "comprehensive tax levying" in China.

In current times, individuals are often taxed at different rates for different kinds of incomes, for example, wage based tax, stock based tax and house renting income based tax.

Under "comprehensive tax levying", all incomes of an individual will be taxed at a uniform rate. The more a person makes, the more he pays. This will make it possible for the government to adjust income distribution. It will also help to narrow the gap between the rich and the poor.

The reform of the individual tax identification number is regarded as the basis of tax reforms, including property tax reform.