Experts push for raising tax threshold

The first ministerial review of the country's income tax system has recommended that the current tax threshold be maintained, despite repeated calls to raise the level to ease the burden on a growing number of middle-income families and stimulate domestic consumption amid the economic downturn.

Personal income tax is the major financial source to adjust income distribution and subsidize the country's needy, so raising the tax threshold will lead to a reduction in total tax revenue and the government's investment in social security, education and healthcare, the Ministry of Finance review released yesterday showed.

"Raising the tax threshold will eventually harm the interests of low-income families and the needy," the report said.