Home » Opinion » Opinion Columns
Rich to be taxed?
Print Edition
PEOPLE’S Daily reports that efforts will be stepped up to reform the current personal income tax scheme to make it more equitable.
Citing a senior official from the Ministry of Finance, the newspaper reported recently that various proposals are under discussion.
The current scheme has been criticized during previous meetings of the National People’s Congress because more than two thirds of tax revenue are contributed by medium- and lower-income families, rather than the rich.
In China, tax is automatically deducted from wages by the employer. Wealthier citizens are generally exempted because very few rich people amassed their fortune on the basis of their wages. By comparison, the medium- and lower-income families derive almost all their income from wages.
There are calls to raise the threshold income tax level. In 2011, the threshold was raised to 3,500 yuan (US$570) from 2,000 yuan, but that increment has long been overtaken by inflation and soaring living costs. Some proposals call for a threshold of 5,000 yuan.
Another approach to redress is to find ways to effectively tax higher-income citizens, whose wealth is generally created by operating businesses, playing the capital market or speculating on real estate.
However, efforts to tax the rich will probably be vigorously resisted by powerful vested interests.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
