Chinese lawmakers on Wednesday reviewed revisions to the individual income tax law during panel discussions at the ongoing bi-monthly session of the National People's Congress (NPC) Standing Committee, which runs from Monday to Friday.
According to a draft amendment to the law, the minimum threshold for the personal income tax exemption is expected to be raised from 3,500 yuan ($512) to 5,000 yuan per month or 60,000 yuan per year. The new income tax law will come into force in 2019.
It also adds special expense deductions for items like caring for the elderly, children's education, continuing education, treatment for serious diseases, housing loan interest and rent.
The revisions will improve tax equity to reduce the burden on taxpayers and enable taxation to better play its role in adjusting income distribution, lawmaker Zhang Chunxian said during panel discussions.