The revised personal income tax law has benefited up to 20
million medium- and low-income citizens, relieving them from tax
burdens and helping promote social equality, according to the State
Administration of Taxation (SAT).
SAT figures show that personal income tax revenue totaled
245.232 billion yuan in 2006, up 17.1 percent year-on-year, 11.8
percentage points lower than the growth rate of 2005. The threshold
for personal income tax collection was raised from 800 yuan to
1,600 yuan as of Jan. 1, 2006, when the amended law took
effect.
The revised law aims to narrow the widening gap between the
country's rich and poor and adjust social property allocation
through raising the monthly tax deduction line.
The SAT has enhanced tax levy on people with high income over
the past year. Tax revenue from medium and low income people
increased by 8.4 percent, while the collection from high income
earners surged 33.9 percent.
The rapid growth in tax revenue is mainly contributed by the
rise of people's income fueled by the booming national economy, and
the strengthened supervision over collection rules, the SAT
said.
(Xinhua News Agency January 7, 2007)