Issues and viewpoints

How to amend the personal income tax law is a significant part of the central government's efforts to benefit middle-and low-income groups in China. Some experts said the nation's personal income tax is on an unhealthy path of development, while some suggested the personal income tax threshold should be raised from 3,500 yuan ($560) to 5,000 yuan or above to offset the rising costs of living. Premier Li Keqiang said in his Government Work Report that the government will ensure that progress is made in the reform of the fiscal and tax systems. The report also said the government will launch insurance to cover major disasters and commercial pension schemes that allow for deferred payment of individual income tax.

The government should strengthen the collection of taxes on income other than on wages and salaries, like dividends and inheritance. By increasing the tax on these incomes and reducing the tax on wages and salaries, higher taxes will be levied on the high-income group, and the medium-to-low income group can be ensured a better life. In addition, the tax burden on small and medium enterprises should be reduced.

Yang Liping, head of the department of culture of Hebei province and a deputy to the NPC