- CNTV English - CCTV News

More Chinese citizens want to benefit from proposed personal income tax adjustments

03-04-2011 08:36 BJT

BEIJING, March 3 (Xinhua) -- The Chinese public is looking for a way out of the nation's personal income tax (PIT) burden, expressing hope for a higher personal income tax threshold after the State Council proposed a plan to adjust the PIT entry.

About 38 percent of the country's citizens say that they want the country's top legislature to amend laws to implement the PIT for people who earn a monthly salary of 5,000 yuan (about 761 U.S. dollars) or above, which exceeds the expected 3,000 yuan threshold, according to an online survey in China's most popular portal website

Another 30 percent of respondents want the PIT entry level to be above 5,000 yuan, while one-fifth of people ask for a PIT threshold of 4,000 yuan, according to the survey, which attracted more than 90,000 respondents as of Thursday afternoon.

The anticipated 3,000 yuan threshold level was supported by only 10 percent of survey respondents.

The Chinese public's discussions over the PIT adjustments heated up after the State Council, or China's Cabinet, approved a draft plan to raise the personal income tax threshold and submitted the proposed adjustments to the Standing Committee of the National People's Congress (NPC) for examination.

The proposed amendment to the PIT law included raising the PIT threshold and adjusting the tax rates, but the State Council did not disclose any specific number of revisions.

Li Ziming, who works as a cashier for a private company in Beijing, called the State Council's proposal "a good thing that needs to be done."

"I earn about 2,800 yuan a month now and I will have my two hands up to endorse the hike of the PIT threshold to 3,000 yuan," said Li, who graduated from college one year ago.

"Though the adjustments, if realized, could only save me 55 yuan (about 8.4 U.S. dollars) every month in my PIT payments, I care about the extra benefits because my salary is very low," he said.

Liu Huan, the deputy dean of the School of Taxation of Central University of Finance and Economics, said that the proposed PIT threshold hike is good news for ordinary people since the current 2,000-yuan PIT entry mark is already lower than the average living costs in big cities such as Shanghai and Beijing.

"Raising the PIT threshold will boost the purchasing power of low-income groups and subsidize the low and middle-income workers amid soaring prices," Liu said.

Under the current PIT law, Liu said that nearly half of China's 8.3 billion workers do not have to pay PIT, citing recent research from the Central University of Finance and Economics.

He estimated that the number of PIT taxpayers will drop by 10 percent for every 500-yuan hike in the threshold.

Chinese workers will have to wait for a while for the adjustments since the NPC did not include the draft amendment to the PIT law into its agenda for the upcoming annual session that opens on Saturday in Beijing.

According to the Ministry of Finance, China's revenue from PIT totaled 394.9 billion yuan in 2009, 63 percent of which came from wage earners. The ministry has yet to release the PIT revenue figure for 2010.

The Chinese government raised the PIT threshold from 1,600 yuan a month to 2,000 yuan in March 2008.

Editor:Zhang Jingya |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program