Taxing times mean changes

Reforms of tax system should encourage innovation and green economy while boosting revenue growth of local governments

The proposed increase in the minimum threshold of personal income tax, from the current 2,000 yuan ($308) to 3,000 yuan, has put the country's latest draft amendment to the Personal Income Tax Law in the spotlight.

The high degree of public attention has highlighted the necessity of the country reforming its public fiscal and taxation system to lighten ordinary people's tax burdens and improve their living conditions. This is especially true as the central government is committed to promoting growth in people's incomes at a rate no lower than the growth rate of the country's gross domestic product during the 12th Five-Year Plan (2011-2015) period.