BEIJING: China is considering reform of personal income tax this year, Finance Minister Lou Jiwei said here the other day.
China grossed 443 billion yuan (US$71 billion) last year from the tax, 3.2 percent above the budgetary expectation, Lou said when briefing lawmakers on the government’s final accounts for 2014.
He attributed the overrun to growth of urban incomes being quicker than expected.
There have been arguments for raising the tax exemption threshold of 3,500 yuan per month to 10,000 yuan.
Lou said income tax reform is not just about thresholds, but must consider overall income and spending, such as mortgage costs.
Of China’s 18 current taxes, only three — personal income tax, corporate income tax, and vehicle and vessel tax — are levied through legislation, while the rest are imposed through formal or provisional regulations by the State Council.
