China has slashed RMB 268.6 billion ($40 billion) worth of taxes during the six months since the nation kicked off an individual income tax reform that has particularly affected low-income adult employees, said Yicai.
Some 91.6 million people are no longer required to pay income tax, said Cai Zili, director of a revenue planning and account bureau. On October 1, China raised the threshold from RMB 3,500 to RMB 5,000 to decrease low-income groups’ financial burden.
People aged 36 to 50-years-old benefit from the new tax break policy the most, accounting for one half of the total number of taxpayers, Cai said. This group’s monthly levy reduction is almost RMB 350 per capita. Taxpayers aged below 35 may save RMB 250 every month, and those over 50 may have nearly RMB 230 more to spend.