They debated, they differed and dug deep for a solution to a
vexing issue: How can personal
income tax be levied to benefit as many as possible while at the same time
ensuring State finances do not suffer too much?
The two main concerns were: what should be the income threshold to pay
taxes and whether there should be a unified tax rate across the country?
While no conclusion was meant to be reached at the country's first-ever
legislative hearing on the
hot-button issue held yesterday in Beijing, it is clear that people's
views are actively being sought on a matter of national concern.
Whatever the eventual outcome, foreigners - who pay income tax only if
their monthly income exceeds 4,000 yuan (US$493) - would not be affected,
said a senior taxation official.
But many foreign businessmen and enterprises are likely to be keenly
watching developments as most of their employees are Chinese and changes
would have a bearing on their
income levels.
Last month, the National People's Congress (NPC), the top legislature,
deliberated but was divided on
a draft amendment to the Law on Personal Income Tax, which proposed
raising the threshold at which income tax is levied from 800 yuan (US$99)
to 1,500 yuan (US$185) per month.
A public hearing was then called to solicit
opinion from various circles.
(China Daily) |