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The first press conference of the Fifth Session of the Tenth National People's Congress (NPC) was held at 11 AM today. Spokesman Jiang Enzhu briefed the media on procedures and the session's agenda at the Press Room of the Great Hall of the People in Beijing.

Jiang Enzhu, addressing the hundreds of journalists who will cover the fifth Plenary Session of the 10th National People's Congress (NPC), formally announced that the session will open on March 5 and run until March 16.

According to Jiang, the chief agenda for the session includes: to hear and examine the report on the work of the government by Primer Wen Jiabao; to discuss the drafts of the Property Law and the Corporate Income Tax Law; to hear and examine the report on the work of the Supreme People's Court and the report on the work of the Supreme People's Procuratorate.

During the session, the Party and state leaders will attend the opening and closing ceremonies, participate in some group meetings, and discuss various social topics with NPC deputies, including the increased cost of medical care, rising education fees, soaring housing prices, limited social security coverage, mounting employment pressure, and the widening income gap.

Jiang also stressed that the opening and closing ceremonies as well as four presentation meetings will be open to the press. Select group discussions and the joint discussions of the different groups will also open to both foreign and domestic journalists.

Responding to a question raised by a reporter from Japan NHK TV news regarding China's defense budget, Jiang said: "China's defense budget for 2007 is expected to hit 350.92 billion yuan (US$44.94 billion), 17.8 percent higher than that last year."

He said that the figure marks an increase of 52.99 billion yuan (US$6.79 billion) over that of last year. This year's defense budget accounts for 7.5 percent of the nation's budgeted fiscal expenditure, compared with 7.7 percent in 2004, 7.3 percent in 2005, and 7.4 percent in 2006.

Jiang explained that the defense budget is being raised to further increase salaries and allowances for servicemen and army retirees, ensuring their income follows the same rising trend as economic and social development.

He also stressed that China will stay on the road of peace and development and adhere to a defensive policy in military building.

When asked by a reporter from Interfax-China of Russia about the draft corporate income tax law to be deliberated at the upcoming annual session, Jiang said, "The draft law will neither have a massive influence on foreign companies nor affect their enthusiasm for investment in China."

He revealed that the draft corporate income tax law sets a unified income tax rate for domestic and foreign companies at 25 percent, a response to years of criticism that the tax policies are unfair to domestic companies.

China currently practices dual income-tax structures, under which domestic companies pay income tax at a nominal rate of 33 percent, while their foreign counterparts – who benefit from tax waivers and incentives designed to encourage investment in China – pay an average of 15 percent.

A total of 1,006 motions were submitted by 3,000 NPC deputies during the last session. The Standing Committee of the 10th NPC deliberated on 24 draft laws and law-related resolutions and has adopted 15 of them since March 2006.

(China.org.cn by staff reporter Wang Ke, March 4, 2007)