Related stories

Call for Toilets in Business Venues to Open to Public New law to Govern Defence-related Patents Rocky Route to Business Success West China Income Tax Cut by More Than Half Decision on Amendments to the Law of Judges of the People's Republic of China

China to Amend Personal Income Tax Law

China has initiated a process to amend its personal income tax law, a move long anticipated by scholars and the public，according to Xinhua News Agency.

The executive meeting of the State Council on July 26 approved, in principle, draft amendments to the law. The meeting also reached a decision to submit the draft to the Standing Committee of the National People's Congress (NPC) for deliberation after making further revisions to it.

"With the continuous growth of the national economy and the rising standards of living, some articles of the existing law have fallen behind the times and should be revised," said a participant in the meeting.

Chinese scholars argue that amendments to the law are long overdue. The existing threshold for individual income taxes, 800 yuan (about US$98.70), was instituted in September 1980 when the average level of annual wages was no more than 1,459 yuan (US$179.90). By 2003, the level had risen to 14,040 yuan (US$1,731.2 dollars).

Analysts said that adjusting the threshold would also help to protect the interests of low-income people, as any additional income means a lot to them.