China is likely to raise the threshold for individual income tax to between 2500 and 3000 yuan per month. An unnamed source close to the tax regulator, saying the government may also cut the number of income tax brackets to five from nine.

The report said the draft is being revised by finance and tax authorities and is expected to be delivered to the State Council by the end of this month. The revised version will still need to be approved by the Standing Committee of the National People's Congress, China's top legislature. Currently, the threshold for individual income tax in China is 2 thousand yuan a month.

Earlier this month, the State Council decided to raise the threshold to ease the burden on middle and low income earners. But it didn't give details on the size of the tax cut.