China's top legislature on Saturday adopted a law amendment to
raise the country's individual income tax threshold from 1,600 yuan
a month to 2,000 yuan.
The individual income tax threshold increase was believed to
relieve the economic burden of medium- and low-income earners amid
the recent price increase of some goods.
The amendment will go into effect as of March 1, 2008.
Raising the threshold of individual income tax collection from
1,600 yuan to 2,000 yuan means a reduction of 30 billion yuan in
state revenue a year, according to official statistics.
However, the rise in personal income tax collection threshold
will free 70 percent of income earners from paying income tax. The
current threshold of 1,600 yuan makes 50 percent of income earners
free from paying the tax.
China's consumer price index climbed 6.9 percent in November,
marking the fourth consecutive month the index had been above six
percent. Price increases for various goods have already placed a
burden on common families.
(Xinhua News Agency?December 29, 2007)