CONCESSIONS were made by both central and local authorities on the division of the economic pie as the third plenum of the Chinese Communist Party (CCP) entered its second day in Beijing yesterday.
Central Committee members representing different sectors of the economy were, however, engaged in a debate on the proposed tax reforms.
Meanwhile, sources close to the conference, which was held behind closed doors at the army's Jingxi Hotel, said the Central Committee would also deliberate on political issues such as an impending reshuffle of high-level civilian and military cadres.
While the State Council had decided on new tax bases that would be carved out for both the centre and localities, sources said last-minute negotiations were still going on yesterday.
One bone of contention was the number of taxes and levies that could be shared by both central and local authorities.
In a report yesterday, the pro-Chinese Hong Kong daily, Ta Kung Pao, indicated both Beijing and the regions would jointly be entitled to ''those kinds of taxes which have a direct relationship with economic development and which are relatively large in amount''.