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Personal income tax threshold to be raised
By Su Bei (China Daily)
Updated: 2005-07-29 06:16

China is expected to raise the threshold for personal income tax from the present 800 yuan (US$99) to 1,200 yuan (US$148) or higher, as the country tries to amend the existing personal income tax law.

A cyclist rides past a billboard to promote public awareness of personal income tax in Shanghai, July 28, 2005. [newsphoto]
An executive meeting of the State Council, China's cabinet, approved in principle on Tuesday the draft amendment to the law.

Ministers agreed to submit the draft to the Standing Committee of the National People's Congress for deliberation after further revisions.

Some at the meeting believed the existing law had fallen behind the times and needed to be revised, following the continuous growth of the economy and the subsequent rise in living standards.

Professor An Tifu from Renmin University of China, who participated in earlier discussions on the draft amendments, said the threshold would be raised, as it was considered low.

"Previous discussions agreed the threshold should be set at 1,500 yuan (US$185)," he said.

However, the government could set it at 1,200 yuan (US$148) and allow the threshold to float in different provinces, municipalities and autonomous regions, he said.
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