The Revision Of The Personal Income Tax Law Is In The Final Stage Of &Nbsp; The Time For Publication Is Still Uncertain.

Recently, the amendment to the People's Republic of China personal income tax law (Draft), which is about to be reported to the Standing Committee of the National People's Congress, has attracted media attention.

At present, there are three suspense about the draft, especially the time of tax law amendment.

Reporters interviewed a number of experts, experts said, now can not predict.

In addition, public opinion calls for regional differences in individual tax collection.

This reporter interviewed Professor He Zhenyi, Institute of Finance and trade economics, Chinese Academy of social sciences.

He Zhenyi said, "consider the area."

The current round of tax law amendment enters the final stage.

The current People's Republic of China personal income tax law has been revised five times since it was first formulated in 1980.

This amendment is the sixth time.

During this period, great changes have taken place in China's economic situation and people's income.

In 1994, China's personal income tax was only 7 billion 300 million yuan, and increased to 372 billion 200 million yuan in 2008.

Personal income tax revenue

Data show that in 2010, the total income of the national personal income tax was about 480 billion yuan, while the total tax revenue of the whole country was about 7 trillion and 300 billion yuan.

Personal income accounts for only about 6.5% of the national tax revenue.

Although it is the fourth largest tax category in China, personal income tax accounts for a small proportion of China's total fiscal revenue.

Therefore, there is much room for China's personal tax reform.

In February 27th this year, Premier Wen Jiabao received an exclusive interview with the Chinese government network and Xinhua net. He said online that he would raise the personal income tax deduction standard.

Subsequently, at the executive meeting of the State Council in March 1st, the draft amendment to the personal income tax law was adopted in principle, and the reform direction of raising the threshold of personal income tax and adjusting the secondary distance was also determined.

At the same time, the conference decided that after the further revision of the amendment to the People's Republic of China personal income tax law, the State Council will submit it to the Standing Committee of the National People's Congress for deliberation.

On March 20th, Xie Xuren, Minister of finance at the China Development Summit Forum, said in 2011 that China will further improve the personal income tax system in 2011, rationally adjust the tax structure, reduce the tax burden on the middle and low income groups, and strengthen the regulation of high income.

It can be said that the revision of China's round of tax law has entered the final stage of tackling crucial problems.

The specific way of reform remains to be finalized by the departments concerned.

Three major suspense on the amendment of tax law

At present, there are three major suspense in the reform of the tax law: first, the time of the amendment of the tax law; two, how much the tax threshold is raised; and three, whether there will be changes in the tax system.

In March 1st, the Executive Council of the State Council passed the draft amendment to the personal income tax law in principle.

At the same time, it was decided that the amendment of the People's Republic of China personal income tax law (Draft) should be further amended, and the State Council shall submit it to the Standing Committee of the National People's Congress for deliberation.

But up to now, there is no definite information about whether the draft has been submitted to the Standing Committee of the National People's Congress.

Reporters interviewed a number of experts, experts have said that at present can not predict the specific tax law amendment time.

This is the first big suspense.

There are many rumors about how much the tax threshold should be pferred to.

There were 2500 yuan and 3000 yuan, and more than two delegates called for 5000 yuan.

Judging from all kinds of news, it is hard to conclude at the moment.

This is the second major suspense.

Some experts even think that the starting point of individual tax should not be too high.

A famous economist, Wahson (micro-blog), points out that the pfer of the tax threshold to 5000 yuan has no practical significance for the low-income class, but is conducive to the high income class.

It is reported that China's personal income tax threshold has been adjusted two times, the first time is 2006, the exemption amount increased from 800 yuan to 1600 yuan.

The second time was 2008, from 1600 yuan to 2000 yuan.

As for the third big suspense, whether there will be changes in the tax system.

In March 29th, Professor Li Daokui, a member of the central bank's monetary policy committee, said that the focus of individual tax reform should not be confined to the issue of starting points, but also to focus on institutional reform.

Individual tax reform should consider labor income, capital appreciation and dividends, while taking into account other comprehensive income and family burdens.

Li Daokui's position clearly represents the current mainstream view of China's personal tax reform.

At present, the starting point of personal tax reform is not the key, but the key is the tax system.

The existing tax system in China has implemented a "one size fits all" approach, which has covered a lot of problems.

Professor He Zhenyi of the Institute of Finance and Trade Economics of the Chinese Academy of Social Sciences believes that raising the threshold of personal tax is good for expanding domestic demand, but it is difficult to fundamentally solve the problem of income distribution.

For those less paid working-class families, the current threshold of 2000 yuan is enough, and raising the tax threshold will not help them.

In view of the reform of the personal income tax system, the idea of collecting taxes by family units and taking into account regional differences is more important.

Although these views have not been taken into consideration in the draft amendments to the personal income tax law, they have been put on the agenda for future reform.

Individual tax collection is difficult to consider in terms of regional differences.

Since the implementation of "one size fits all" on collection standards can not fully reflect the taxpayer's ability to pay taxes, China's personal tax collection has limited role in regulating the rich and poor.

Therefore, there is a view that individual tax collection should take into account regional differences.

Regardless of the tax threshold or the tax rate, regional differences should be taken into account.

Li Daokui, a member of the monetary policy committee of the central bank, believes that the future tax reform may require decentralization and regionalization, and a new round of reform needs more local attempts to innovate.

Some analysts believe that the individual tax should be considered in particular.

In the course of the interview, a reporter from the financial network of China new net learned that a college student in Beijing assumed a monthly income of 6000 yuan before taxes, and a college student who had a monthly salary of 3500 yuan before the three line city's pre tax.

If considering the high housing cost and living cost of Beijing, the former is not much different from the latter in real wages, but the former should pay nearly four thousand yuan more personal income tax a year.

Whether we should consider the issue of regional differences in the collection of personal taxes, He Zhenyi, Professor of the Institute of Finance and Trade Economics of the Chinese Academy of Social Sciences, said: "the idea of considering regional differences is good, but this is difficult at first.

For example, the distinction between the East and the west, even in the economically developed Guangdong area, there are many areas where the economy is not well developed.

Second, it is hard to define in law. "