Tax reform to improve people's income

In the Government Work Report delivered to the first session of the 13th National People's Congress on Monday, Premier Li Keqiang said China will raise the individual income tax threshold and create expense deductions for items such as children's education and treatment for serious diseases, which are important measures to help improve people's incomes and increase their sense of gain, happiness and security.

Everyone will benefit from the personal income tax reform, Xiao Jie, minister of finance, said at a news conference on Wednesday.

Thanks to the rising incomes in recent years, an increasing number of people have to pay individual income tax. The 2018 budget report advocated the acceleration of the financial and taxation system reform, which will include the promotion of comprehensive and classified combined individual income tax system reform, reasonable increase in tax exemption standards and higher expense deductions for items such as children's education and treatment for serious diseases.