Ministry Of Finance: The Reform Plan Of Individual Tax System Has Not Been Determined Yet.

What kind of plan will be adopted ultimately needs further investigation and demonstration.

According to Xinhua news agency, the National People's Congress

In this regard, the National People's Congress Finance Committee believes that the individual income tax system is an important means to regulate the distribution of national income. It is of great significance to perfect this system at present. It is suggested that the relevant departments should adjust the standard for the deduction of wages and salaries in a timely manner according to the changes of the bill and the basic living expenses of the residents, strengthen the research and demonstration of the individual income tax scheme, and start the revision of the personal income tax law in time.

In September 2005, the NPC Law Committee, the finance and Economic Committee and the Legislative Work Committee of the Standing Committee of the National People's Congress held a legislative hearing on the deduction of personal income tax.

The meeting decided that the standard of deductible expenses for wage earners would be raised from 800 yuan to 1600 yuan.

In 2007, the state once again raised the cost of wage deduction to 2000 yuan.

However, the remarkable increase in consumer spending, such as housing, has made the call for raising the threshold of personal income increasing.

During the 62 sessions of the National People's Congress in March 2010, there were 2 representatives in the motion. The current personal income tax law has a high tax rate and a heavy tax burden on the wage earners and the middle and low income groups. It is suggested to modify the personal income tax law, lower the tax rate or raise the tax threshold for salaries and salaries.