BEIJING, March 6 (Xinhuanet) – Earlier today, Minister of Finance Lou Jiwei and deputy minister Liu Kun met the media and outlined the work of the finance ministry and, in particular, taxation reform. One of the major issues of public concern this year is whether there will be a cut of individual income tax.
"We need to solve our remaining problems, restructure the old development mechanisms; this is the new normal. During the process, we need to try to avoid the economic downturn, hold fast under the pressures, expanding our monetary and fiscal policies," Lou said.
"Our individual income tax system is currently not appropriate. There are 11 individual tax payment items. We have been asked to reform these since the 3rd Plenary Meeting, to change it to a combination of individual and comprehensive tax payment systems. In fact, it is a comprehensive tax payment system. It is more reasonable. It's not fair to simply increase the starting point of the income tax. For example, for someone, who earns 5,000 RMB a month, they can live quite decently. But if the person needs money to look their family, their life won't be as decent. So we need to deepen the taxation reform.”
(Source: CNTV)
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