Tax reform aims to plug loopholes

Taxation authorities are mulling reform of the personal income tax system by clubbing total income under one head and lowering the top rate to check evasion and simplify computation.

Currently, taxpayers pay personal income tax on 11 different categories, such as salary, rental income and freelance earnings, with different thresholds and rates.

"A unitary tax scheme could solve the problem," a State Administration of Taxation (SAT) official, who did not want to be named, told China Business News.