China’s tax reform increases personal disposal income
From January to April, China’s reforms on individual income
tax, including raising the tax threshold and introducing additional deductions,
helped cut tax by 214.3 billion yuan and exempted 99 million people from paying
personal income tax.
Under the scheme, an average of 1,026 yuan per capita in tax
was cut for Chinese people in Q1, according to statistics from the State
Administration of Taxation (SAT).
Statistics in Q1 indicate that taxpayers aged from 36 to 50
years old benefited most from the additional deductions, said Cai Zili, an
officer at SAT.
"Education, housing and elderly support are the major
expenses for middle-aged people. The more they spend on these items, the more
tax cuts they will get," said Wang Yanming, director of the municipal
taxation bureau of Weifang, east China’s Shandong province.
From January to April, personal income tax cuts for people
aged between 31 and 50 years old accounted for 67 percent of Weifang’s total
tax cuts in this area.
Li Xuhong, an expert on finance and taxation from the
Beijing National Accounting Institute, pointed out that the individual income
tax reform could not only lessen the tax burden for those on lower incomes, but
also stimulate consumption.
Yang Wenjuan, a technician from Shengrui Transmission
Corporation, who is studying postgraduate courses at Tianjin University while
working, said with the new deduction on expenses for further education, she
received a monthly tax cut of 400 yuan.
The individual income tax reform is also expected to
increase consumer spending by 717.6 billion yuan, according to a report
released by Peking University's China Center for Economic Research.
Source: People’s Daily Online
On January 11, 2019, in the tax office of Xinle, Hebei
province, a staff member is helping taxpayers understand various functions of
personal income tax mobile APP, and tutoring taxpayers to fill in special
additional deduction information, so as to ensure taxpayers timely enjoy the
individual income tax reform bonus. Phote by Jia Minjie from People’s daily
online
China’s tax reform increases personal disposal income
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