ZCZC
BCN-35
CHINA-INCOME-TAX-REFORM
Chinese taxpayers pay 31.6 billion yuan less in first month after income
tax reform
BEIJING, Dec. 3, 2018 (BSS/Xinhua) – Chinese people have found the tax
expenses on their October pay slips drop drastically after new tax brackets
were adopted on Oct. 1, according to the State Administration of Taxation
(SAT).
The tax reduction amounts to 31.6 billion yuan in total while more than 60
million people have been completely exempt from individual income tax, SAT
statistics showed.
Taxpayers in the manufacturing industry benefited the most after the
minimum threshold for personal income tax was raised from 3,500 yuan (about
510 U.S. dollars) to 5,000 yuan per month starting October.
Their aggregate tax payment dropped by 5.85 billion yuan, accounting for
19.3 percent of the total reduction for October payrolls.
Employees in the equipment manufacturing sector posted an aggregate tax cut
of 3.43 billion yuan — 58.7 percent of the total reduction for manufacturing
employees.
Private enterprises also saw noticeable tax cuts, with their employees
paying 16.45 billion yuan less.
Analysts say these changes conform to the objectives of the tax reform
which are to facilitate social justice and increase the growing vitality of
the Chinese economy.
Luo Tianshu, director of the Income Tax Bureau of the SAT, said taxpayers
who earned less than 20,000 yuan in October found their tax expenses more
than halved. Their aggregate tax expenses were 22.4 billion yuan less.
Wage-earners have seen their tax payment slashed by 41.3 percent or 30.41
billion yuan in total.
Li Wanfu, director of Taxation Science Research Institute, said the income
tax cuts were substantial for private businesses, which would give a boost to
them and enhance their competitiveness.
BSS/XINHUA/HR/1458