China likely to release income tax reform plan in H1 2017: paper
[BEIJING] China is speeding up income tax reform and is likely to release a specific plan in the first half of 2017, the state-owned Economic Information Daily reported on Wednesday.
One of the key reforms will be extending income-tax deductibility to items such as re-education expenses and first-home mortgage interest payments, the paper said, citing a member from the Internal Control Institute affiliated with the Ministry of Finance.
The reform will not simply be raising the minimum tax deduction rate as done in the past, as that would be preferential to the high income group and further deepen income inequality, Zhang Lianqi, a member from the Internal Control Institute, was quoted as saying.
Income tax only makes up 6.3 per cent of total tax revenue in China last year, compared with 45 per cent in the United States, the paper said.
China's state cabinet released a document in October on income distribution reform, noting it would use taxation to narrow the income gap between different groups.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Sri Lanka’s economy expected to grow 3% in 2024, central bank says
Yellen says US can bring inflation down without hurting jobs
US dollar briefly falls versus yen after GDP data
US weekly jobless claims unexpectedly fall
US economic growth slows more than expected in Q1
Malaysia ex-PM Mahathir facing anti-graft probe in a case involving his sons