CRI听力：China to Raise Individual Income Tax Threshold

China is proposing to raise its monthly individual income tax levy threshold from the current 1,600 yuan or 220 U.S. dollars to 2,000 yuan or 270 dollars.

The move is described in a draft amendment submitted to the ongoing 31st session of the Standing Committee of the National People's Congress, China's top legislature.

Chinese Finance Minister Xie Xuren says the individual income tax threshold increase is expected to relieve the economic burden of medium- and low-income earners amid the recent price hike of some goods.

"The current threshold of 1,600 yuan made 50 percent of income earners free from paying the tax. The rise in personal income tax collection threshold would free 70 percent of income earners. Its major beneficiaries are medium- and low-income earners."

The individual income tax cutoff point was raised from 800 yuan a month to 1,600 yuan starting in 2006, based on an investigation of the citizen's consumption expenditure for basic living costs back then.

If approved, the amendment will take effect on March 1, 2008.