The revised personal income tax law has benefited up to 20 million medium-
and low-income citizens, relieving them from tax burdens and helping promote
social equality, according to the State Administration of Taxation (SAT).
SAT figures show that personal income tax revenue totaled 245.232 billion
yuan in 2006, up 17.1 percent year-on-year, 11.8 percentage points lower than
the growth rate of 2005. The threshold for personal income tax collection was
raised from 800 yuan to 1,600 yuan as of Jan. 1, 2006, when the amended law took
The revised law aims to narrow the widening gap between the country's rich
and poor and adjust social property allocation through raising the monthly tax
The SAT has enhanced tax levy on people with high income over the past year.
Tax revenue from medium and low income people increased by 8.4 percent, while
the collection from high income earners surged 33.9 percent.
The rapid growth in tax revenue is mainly contributed by the rise of people's
income fueled by the booming national economy, and the strengthened supervision
over collection rules, the SAT said.