The number of people who have to pay personal income tax will reduce from 84 million to 24 million after China raised the monthly personal income tax threshold, The Beijing News reported Friday, citing a senior official.
That means about 60 million people will be exempt from paying any personal income tax after the amendment, said Wang Jianfan, deputy director of the tax policy department at the Ministry of Finance, at a news conference on Thursday.
The National People's Congress (NPC) said on June 30 that it would raise the monthly personal income tax threshold to 3,500 yuan ($542) from the current 2,000 yuan and the adjustment will take effect on Sept 1.
The previously proposed threshold was 3,000 yuan, but after public opinion was solicited by the NPC, it was lifted to 3,500 yuan.
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