NPC urged to pass tax-cut bill

2007-12-27 21:48:06 Shanghai Daily

THE law committee of China's top legislative body today suggested the Standing Committee of the National People's Congress pass a bill tomorrow to raise the monthly individual income tax levy threshold by 400 yuan (US$54.64).

If passed, the taxable monthly income threshold will rise to 2,000 yuan, which is expected to ease the burden on medium and low-income wage earners hit by rising prices.

The rise in the threshold would free 70 percent of income earners from paying income tax. The current threshold of 1,600 yuan exempts 50 percent of income earners from tax.

Also, other draft laws, including the anti-drug law and the labor dispute mediation and arbitration law, will also be sent for voting.

The 31st session of the Standing Committee of the NPC opened on Sunday and will close tomorrow.