The personal income tax reform is unlikely to change the 2,000 yuan ($303) threshold, but may adjust the tax rates and the distances between rate levels, 21st Century Business Herald reported Tuesday citing anonymous sources.

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The personal income tax revision draft, which was co-compiled by the Ministry of Finance, State Administration of Taxation, and legislative affairs office of the State Council in November, had been submitted to China’s cabinet, the paper said.

Liu Shangxi, vice-director at the research institute of fiscal science under the Ministry of Finance, said earlier that a lift in the threshold would not help create fair income distribution, but generally reduce the income tax.

"Larger distances between rate levels is good for mid- and low-income earners, as they will not reach a higher rate level in the near future," said Liang Peng, macroeconomic director of the economics department of Party School of the Central Committee of Communist Party of China.