Minimum income tax threshold to be raised

China's top legislature adopted an amendment to the Individual Income Tax Law on Friday, raising the minimum threshold for paying personal income tax from 3,500 yuan ($510) to 5,000 yuan per month, or 60,000 yuan per year.

The amendment aims to reduce the burden for taxpayers, raise people's incomes and boost consumption, legislators and finance officials said.

"Considering that the average basic consumption expenditure for residents in Chinese cities and towns is about 4,200 yuan a month per person in 2018, we set the minimum threshold of personal income tax at 5,000 yuan. It not only covers the expenditures but also leaves room for further increases in consumption," Vice-Finance Minister Cheng Lihua said at a news conference on Friday.