Income tax threshold in surprise increase

NPC sets the mark at 3,500 yuan after gauging public opinion

BEIJING - The monthly personal income tax threshold will be raised to 3,500 yuan ($540) from 2,000 yuan, providing a bonus to wage earners with a larger than expected tax cut.

The National People's Congress (NPC) said it would lift the threshold from the previously proposed 3,000 yuan, after public opinion, solicited by the NPC, overwhelmingly favored further tax cuts. The adjustment will take effect on Sept 1, according to the NPC.