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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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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.