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A new tax-deferred pension system might roll out as early as October this year, according to a report in

The finance minister, Xiao Jie, submitted a report to the State Council concerning the country’s budget on Tuesday, which included an item on new taxation for pension funds, Yicai reported, which signalled a move toward a new form of taxation that could be implemented as early as October.

The incoming change is part of China’s overall pension reform, which authorities have mulled over for more than a decade, the report said. The push towards the tax-deferred pension scheme will also follow changes in commercial pension insurance.

Under the proposed scheme, individuals are allowed to defer tax on the portion of income used to buy commercial pension insurance, the report said. Upon retirement, they would be able to draw from the fund.