Business
        

Economy

3,000-yuan tax threshold can offset inflation: Official

Updated: 2011-06-07 16:27

By Yin Mingzhe (chinadaily.com.cn)

Twitter Facebook Myspace Yahoo! Linkedin Mixx

Proposed income tax threshold enough to offset the recent inflation, economist says

Jia Kang, director of the Research Institute for Fiscal Science under the Ministry of Finance, said in an article he co-authored that a proposal to increase the minimum income tax threshold to 3,000 yuan is enough to offset the recent round of inflation. The article was published by Wednesday's China Securities Journal.

Related readings:
3,000-yuan tax threshold can offset inflation: Official Record public response to income tax move
3,000-yuan tax threshold can offset inflation: Official Public response to tax law
3,000-yuan tax threshold can offset inflation: Official Tax proposal receives over 230,000 feedback
3,000-yuan tax threshold can offset inflation: Official Public increases tax pressure on govt

Jia said that with social security payments including three insurance and public accumulation funds for housing, the minimum income tax threshold is actually 3,856 yuan.

"It is necessary to raise the minimum income tax threshold because of recent inflation and significantly rising consumer spending. However, it is the key to achieve a fairer income distribution by adjusting tax brackets, which would benefit middle- and low-income groups," he added.

He also said that the draft proposal would cancel the tax bracket of 15 percent among people who earned 7,500 to 12,000 yuan in income, which would increase the burden for these middle class taxpayers. It will diminish the effect of a national policy to increase the size of the middle class, as well, he added.

"A 15 percent tax bracket should be kept instead of adopting a 20 percent tax bracket," Jia wrote in the article.

E-paper

Harbin-ger of change

Old industrial center looks to innovation to move up the value chain

Chemical attraction
The reel Mao
Improving app-iness

European Edition

Specials

Vice-President visits Italy

The visit is expected to lend new impetus to Sino-Italian relations.

Birthday a new 'starting point'

China's national English language newspaper aims for a top-notch international all-media group.

Sky is the limit

Chinese tycoon conjures up green dreams in Europe with solar panels

Memory lanes
Great expectations
A diplomat of character