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CHINA / National |
China may raise income-tax threshold(Chinadaily.com.cn)
Updated: 2007-12-19 16:51 A draft revision to the personal income tax law will be submitted to the top legislature next week amid growing calls for a rise in the threshold, media report said on Wednesday. Currently, only those who earn more than 1,600 yuan a month have to pay personal income tax in the country. Regulators raised the threshold to the current level on January 1, 2006 from the 13-year-old level of 800 yuan as people's earnings jumped thanks to a booming economy. In 2006, urban residents' annual per capita disposal income stood at 1,1759 yuan, compared with 739.1 yuan in 1985. No details have been unveiled about the draft, however, the public have shown great interest in the possibility of a threshold hike. Experts said a rise is possible in the near future, since the cost of living has jumped, according to the China Business Daily. Inflation hit a 11-year high of 6.9 percent in November on rising food prices. The threshold should be raised to 2,000 to 2,500 yuan, an expert was quoted as saying by the newspaper. A recent survey conducted by China Youth Daily shows that 97 percent of respondents thought existing threshold was too low and wanted it to be increased. |
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