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They debated, they differed and dug deep for a solution to avexingissue: How can personal income tax be levied to benefit as many as possible while at the same time ensuring State finances do not suffer too much?
The two main concerns were: what should be the income threshold to pay taxes and whether there should be a unified tax rate across the country?
While no conclusion was meant to be reached at the country's first-everlegislative hearingon the hot-button issue held yesterday in Beijing, it is clear that people's views are actively being sought on a matter of national concern.
Whatever the eventual outcome, foreigners - who pay income tax only if their monthly income exceeds 4,000 yuan (US$493) - would not be affected, said a senior taxation official.
But many foreign businessmen and enterprises are likely to be keenly watching developments as most of their employees are Chinese and changes would have abearingon their income levels.
Last month, the National People's Congress (NPC), the top legislature,deliberatedbut was divided on a draft amendment to the LawonPersonal Income Tax, which proposed raising the threshold at which income tax is levied from 800 yuan (US$99) to 1,500 yuan (US$185) per month.
A public hearing was then called tosolicit opinionfrom various circles.
(China Daily)
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Updated: 2005-09-28 11:19
