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China cuts income tax for low wage earners
(AFP)
Updated: 2005-10-23 08:56

China looks set to ease the tax burden on its low- and middle-income residents after holding a landmark public consultation amid fears that a growing wealth gap could hurt stability.


China looks set to ease the tax burden on its low- and middle-income residents after holding a landmark public consultation amid fears that a growing wealth gap could hurt stability. [AFP/File]

State news agency Xinhua said the income tax threshold would be raised from 800 to 1,600 yuan (99 to 198 dollars) a month, according to the second draft of a law submitted to the National People's Congress Standing Committee for approval.

The new threshold was raised slightly from 1,500 yuan in the previous draft to 1,600 yuan after the country's first ever public consultation on a law.

"After fully considering the public opinion from the hearing, the draft amendment of the law ... lifted the personal income tax cutoff point from 1,500 yuan to 1,600 yuan," Xinhua said on Saturday.

Wage earners, officials drafting the law, trade unions representatives and delegates of poor provinces' tax authorities were invited to the hearing, the first public consultation for a law, Xinhua said earlier.



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