China is set to implement a new tax plan to stimulate household consumption levels and ease excessive levels of savings, the Financial Times reports.
Under the new system, which is likely to affect almost all taxpayers, the income tax threshold will be raised from $6,300 to $9,000 per year, and millions more will be included in the lowest three tax brackets of 3%, 10%, and 20%. The upper limit on the 20% bracket, for example, has been lifted from $16,000 to $45,000.
The draft regulations will available for public comment until the end of July, with the finalised version expected for implementation in October.
Also outlined were proposals to tighten tax collection, particularly from real estate firms and financial companies using offshore tax havens.