Beijing, June 30 (IANS) China’s top legislature Thursday adopted an amendment to the country’s individual income tax law, raising the monthly tax exemption threshold from 2,000 yuan ($307.7) to 3,500 yuan.
The adjusted threshold is 500 yuan greater than the amount originally proposed in a previous draft of the amendment, which was submitted to the National People’s Congress (NPC) Standing Committee Monday.
The amendment was ‘necessary and timely’ and will reduce tax burden for people with low incomes, as well as help adjust the distribution of income, Xinhua quoted the committee’s proposal as saying.
The previous law stated that individuals who earn less than 2,000 yuan per month are not required to pay income tax.
The draft amendment, submitted for its first reading April 20, proposed raising the threshold to 3,000 yuan per month.
Many had voiced their dissatisfaction with the 3,000-yuan threshold, appealing to lawmakers to reconsider the amendment.
