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2016-06-25
43
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Chinese lawmakers are reviewing a plan that would raise the monthly individual income tax threshold to 2,000 yuan(US $270)from 1,600 yuan, a move designed to help medium to low-income earners. The draft amendment for raising the threshold by 25percent was yesterday submitted to the Standing Committee of the National People’ s Congress for deliberation. The amendment is expected to become effective March 1, 2008. Raising the personal income tax threshold would free 70 percent of income earners from paying income tax, compared with 50 percent now. Minister of Finance Xie Xuren said, " Raising the individual income tax threshold is within the country ’ s financial capacity and aims to relieve the economic burden on medium and low income earners. " Xie said the move would mean a reduction of 30 billion yuan in government revenue. China doubled the threshold to 1,600 yuan in 2006. The planned amendment comes as China’ s consumer price index(CPI)in November rose to a high not seen in 11 years. China’ s CPI jumped to a high of 6. 9 percent in November mainly because of food price increases. Food prices, which have a 33 percent weighting on the CPI, soared 18.2 percent last month.
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