Xinhua Beijing, April 20 (reporter Cui Qingxin, Han Jie) NPC draft 20th amendment to the initial consideration of the personal income tax law, to be adjusted according to the payroll tax rate levels-level margins, production operations and adjusted individually contracted or leased operation of the tax level distance, makes production and business income taxes has declined to support the development of such taxpayers.
Treasury Minister Xie xuren in following the session National Standing Committee 20th times meeting Shang on personal income tax method amendment draft for description Shi describes said, because draft intended will existing of 9 level excess progressive rate modify for 7 level, for balance individually production operating proceeds taxpayers and contracting tenant operating proceeds taxpayers and wage proceeds taxpayers of tax level, draft maintained existing on production operating proceeds of 5 level rate levels does not variable, on production operating proceeds rate table of level from for has corresponding adjustment, will rate table of first level level from by years should tax proceeds amount 5,000 yuan adjustment for 15,000 yuan, other the document of level from also corresponding for has adjustment.
Yi Liu, Professor, Peking University School of Economics noted that adjusted production decline in operating income taxpayers have different levels of tax burden in order to help encourage the industrial and commercial households tenant operators such as SME development and contracting.
according to estimates, from 2010, adjusting production operations rate level margins, reduce personal income tax revenue of about $ 11 billion.
author: Cui Qingxin Han Jie
