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    Guangdong Wants To Apply To The Central Government To Establish A Floating Standard Tax Mechanism.

    2010/6/22 16:03:00 10

    Land Tax

    CPPCC members suggested that the Guangzhou tax threshold should be raised to 3000 yuan. The provincial taxation bureau has made a clear response to this proposal: Guangdong wants to apply to the central government to establish a floating standard of tax standard.


    In June 21st, the reporter learned from the reply of the Guangdong provincial land tax bureau to the CPPCC members' proposal that Guangdong will apply to the central government for establishing a floating income tax system with personal income tax standard linked to regional price level and inflation coefficient as the price index and consumption expenditure are higher than the national average level, so as to raise the threshold of Guangdong personal income tax.


    During the two sessions this year, Huang Xiqin, a member of the CPPCC National Committee, put forward in his proposal that the income distribution system is unreasonable, which has restrained the growth of national consumption and caused insufficient domestic demand.

    According to the analysis, the slow increase of residents' income in Guangdong is an important reason for the growth of consumption lags behind economic growth.


    "The threshold of personal income tax has increased from 1600 yuan to 2000 yuan since March 1, 2008, and the threshold is obviously too low in developed provinces and cities.

    Guangdong province ranks first in the economic position in the country, and the gross economic volume is large and the per capita income is not balanced. It is necessary to formulate its own tax threshold in advance.

    Huang Xiqin suggested that, for example, Shenzhen could raise the tax threshold to 3500 yuan or higher; Guangzhou could raise the tax threshold to 3000 yuan or higher.

    At the same time, starting from the fifth level (part of the taxable income of 20000 to 40000 of the month), we will increase the tax rate by 10% on the basis of the existing tax rate.


    Guangdong provincial land tax bureau recently replied, acknowledges that the current standard is reasonable in accordance with the national average level, but in Guangdong, where the price index and consumption expenditure are high, it is obviously low.

    It is also considered that Guangdong should first formulate its own tax threshold, and it is reasonable to handle the tax threshold according to the price level in different regions.

    The reply indicated that, because of the prior provisions on tax administration authority, the legislative power and most management rights of central tax, shared tax and local tax are centrally centralized, and tax departments at all levels must not alter the adjustment without authorization.

    However, Guangdong will reflect to the central government that it is suggested to establish a floating mechanism for the deduction of the individual income tax payroll expense standard, which is linked to the regional price level and the inflation coefficient.

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