The State Council, at an executive meeting chaired by Premier Li Keqiang on Jan 4, passed the draft stamp tax law.

"Based on the practice in implementing the interim provisions on stamp tax in past years, this draft will bring stamp duty on securities trading into legal norms with the current tax system remaining unchanged," Premier Li said.

While streamlining tax items with certain tax cuts, the draft stipulated that tax rates on trading, technology contracts and security trading remain unchanged.

It lowered tax rates on processing contracts, survey and design of construction projects, cargo transport contracts and business books, and canceled the stamp duty on licenses.

The draft also made clear that the current preferential stamp duty policy remains unchanged.

The enactment of the draft can improve the standardization and legalization of the stamp tax, ease enterprise burdens, reduce discretion, and remove arbitrary loopholes, Premier Li said.