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Public opinion on income tax draft

0 Comment(s)Print E-mail CNTV, June 17, 2011
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China's top legislature, the NPC Standing Committee, has publicized suggestions and opinions on amending the nation's Individual Income Tax Law. The results show many people in favor of raising the threshold to 5,000 yuan, up from the proposed 3,000 yuan.

More than 82-thousand citizens submitted their views on the income tax proposal. 15 percent favor raising the exemption to 3-thousand yuan per month, while nearly half suggest further boosting the threshold to 5-thousand yuan.

They argue 3-thousand yuan is too low for people living in big cities like Beijing and Shanghai, where many young people's monthly home mortgage payments are often much higher than that amount.

But some believe there should be different thresholds, in line with local income levels. They say provinces, autonomous regions, and municipalities should be authorized to have choices. For example, a 3-thousand yuan threshold for the western region, 4-thousand for the middle region, and 5-thousand for the eastern region.

In addition, many people propose that the government should consider more methods for citizens to apply for tax reduction and reimbursements for education, medical treatment, and raising families.

Analysts say establishing a comprehensive and categorized individual income tax system will give consideration to people at different economic levels, which is in line with the objective of reforming the tax system, as the 12th Five-Year Program is implemented.

According to statistics volunteered by participants who made suggestions online, 43 percent came from Beijing, Shanghai, and Guangdong Province. Another comparison shows that nearly half of the respondents have monthly incomes between 3,000 and 7,500 yuan.

The top legislature will start reviewing the latest amendment to the law on June 27th.

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