With the adoption of the set of Sustainable Development Goals (SDGs) at the UN Summit in September 2015, Member States have committed to building a better world, where prosperity will be shared by all. This echoes China’s own vision to build an “all-round well-off” society by 2020, which places inclusive growth on the top agenda. Despite China’s remarkable economic growth, income inequality continues to widen with Gini-coefficient above 0.47 during the past decade. This has brought attention to China’s fiscal policies, particularly tax policies, which have long been deemed as the primary instrument to collect revenue and redistribute income. This issue brief provides an overview of China’s current tax system and its implications for reducing income inequality.