China's top law-makers have begun their latest session. The Standing Committee of the 10th National People's Congress is discussing twelve draft laws and law amendments.
The Standing Committee of the 10th National People's Congress is discussing twelve draft laws and law amendments.
A key inclusion is a proposed amendment to the Individual Income Tax Law. If passed, this could make life easier for low and middle income earners by cutting what they need to pay in terms of taxes.
The draft revision proposes to raise the personal income tax threshold from the current 16 hundred to two thousand yuan, or about 270 US dollars.
The move, which aims to help low and middle income earners cope with inflation, has won widespread support from law-makers.
Wang Yiming, Member of NPC Standing Committee, said, "I personally agree with this amendment. I believe the proposal will get approved during this session of the NPC Standing Committee."
But other members say raising the tax threshold is not enough. They believe that pushing forward overall tax reforms is key to making the system more equitable.
Wang Liping, Member of NPC Standing Committee, said, "We should reform our overall taxation mechanism, including tax rates, and not just the tax threshold. I think we should accelerate the pace of the reform."
The rise in the personal income tax threshold to 2000-yuan is expected to free 70 percent of salary earners from paying income tax. The general public has welcomed news of this possible adjustment.
Citizen, said, "I think this is a good thing for ordinary citizens, especially salary earners like us."
Citizen, said, "It's a good thing. But I think the 2500-yuan level might be more appropriate."
The current 16-hundred tax cutoff level was adopted in January 2006. The proposed adjustment, if passed, will be the second tax threshold hike in over a quarter of a century.
"Legislators say the proposed hike in personal income tax threshold has taken into consideration the potential increases in consumer spending over the next two years. They say any future adjustment is possible based on the growth level of consumer expenditures. "
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