NPC: Draft Changes to Income Tax Law Require More Discussion

Draft amendments to the Personal Income Tax Law were not voted on by delegates to the 20th meeting of the 11th National People's Congress Standing Committee on Friday. Delegates instead choose to first make the draft amendments public and to seek feedback from the public before voting on the amendments. The draft amendments were submitted to the NPC by the State Council and sought to lift the threshold for taxable income from 2,000 yuan a month to 3,000 yuan a month, improve the collection of income taxes from wealthy people and also to reduce the number of tax brackets from 9 to 7. However, disagreements over whehter the new 3,000 yuan a month threshold was high enough, whether to tax income on an individual or a family basis and concerns that the adjustments didn't go far enough in addressing the serious income gap in China led to the amendment not being put to a vote.

Source
China Securities Journal