A draft amendment to the individual income tax law will be submitted to the national legislature for its first review next week, and experts suggest the starting point should be raised to 2000 yuan ($270.91) or 2,500 yuan, according to today’s Guangzhou Daily.
The draft will be first read at the 31st session of the 10th National People’s Congress (NPC) Standing Committee to be held from Sunday to December 29, said the paper.
A survey conducted recently by the Beijing-based China Youth Daily showed 97 percent of the 3,698 respondents thought the current 1,600-yuan monthly income tax threshold was too low and wanted it to be increased.
One of those surveyed said the 800-yuan threshold was introduced in 1981, when the average monthly wage was just 60 yuan. The 1,600-yuan level was brought in last year, but the average monthly income of people in urban areas is now 1,853 yuan.
The starting point of individual income tax is a hot topic though no details have been disclosed yet.
Figures show that the government’s total revenue was 4 trillion yuan last year, and has been growing at an annual average rate of about 20 percent, much higher than the GDP rate.