‘High in­come’ def­i­ni­tion causes de­bate

China Daily (USA) - - CHINA - ByWANG YIQING wangy­iqing@chi­nadaily.com.cn

Fi­nance and tax­a­tion ex­perts have re­futed ru­mors that in­di­vid­u­als whose an­nual in­come is more than 120,000 yuan ($17,720) are in the “high-in­come group” and will be levied higher tax.

The re­but­tal came af­ter the ru­mors pro­voked heated pub­lic dis­cus­sion.

A doc­u­ment re­cently is­sued by the State Coun­cil pro­moted in­creased in­come and re­duced tax bur­dens for low and mid­dle-in­come earn­ers, as well as in­creased taxes for high-in­come earn­ers.

How­ever, the term “high-in­come group” men­tioned in the doc­u­ment was said to be in­ter­preted by the me­dia as mean­ing “in­di­vid­u­als whose an­nual in­come is more than 120,000yuan”, be­cause it is the in­come stan­dard used for the tax self-dec­la­ra­tion sys­tem, ac­cord­ing to cur­rent in­di­vid­ual tax laws and reg­u­la­tions.

Al­though the In­di­vid­ual In­come Tax Law and doc­u­ments pub­lished by the Min­istry of Fi­nance and State Ad­min­is­tra­tion of Tax­a­tion use the term “high-in­come group”, there is no of­fi­cial def­i­ni­tion of the so-called group.

Xin­hua News Agency said on it­sWeibo ac­count on Mon­day that sev­eral fi­nance and tax­a­tion ex­perts who work closely with the govern­ment or­ga­ni­za­tions said that hav­ing an an­nual in­come of 120,000 yuan is not the bound­ary that de­fines­the­high-in­comegroup. Tax self-dec­la­ra­tion of in­di­vid­u­als whose an­nual in­come is more than 120,000 yuan was im­ple­mented in 2006, so it is “not any­thing new”, it added.

More­over, “im­pos­ing higher taxes on the high-in­come group”, which has been sup­ported by the pub­lic, was first men­tioned by theMin­istry of Fi­nance in 2010 as a prin­ci­ple of in­di­vid­ual tax re­form for the 12th Five-Year Plan pe­riod (2011-15).

“I think the me­dia mis­un­der­stood this is­sue,” said Zhang Lianqi, a fi­nan­cial ex­pert who works closely with the Min­istry of Fi­nance. “The me­dia stat­ing that an an­nual in­come of more than 120,000 yuan is the def­i­ni­tion of the term ‘high-in­come group’ is mere spec­u­la­tion.”

“It will take time for the in­di­vid­ual tax re­form plan to be in­tro­duced,” he added.

Comment • Comment

> p11

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.