The government on Wednesday settled an argument concerning reforms for central and local finances with a compromise plan empowering local authorities to levy taxes.
Local governments will now be allowed to collect in taxes the equivalent of 80 percent to 100 percent of the revenue they lose through cuts in central government subsidies.
Specifically, local authorities will collect taxes worth 100 percent of the reductions in subsidies that cover expenses for public services commissioned from the central government under certain conditions.