China seeks public input on proposed tax threshold changes (2)

The draft shows the government's resolution to address people's two major concerns, namely inflation and the widening income gap, said Gao Peiyong, a researcher with the Chinese Academy of Social Sciences.
China's consumer price index (CPI), a major gauge of inflation, jumped 5.4 percent in March year on year, its sharpest rise in nearly three years. And some price officials have warned that China's inflation rate may remain high for the second quarter of this year.
Also, China's government has recognized that it must urgently tackle the income gap between the rich and poor.
Liu Huan, a taxation expert with the Central University of Finance and Economics, said raising the personal income tax threshold will boost the purchasing power of low-income groups amid soaring prices.
He Guoyang, 26, a farmer-turned worker in Dongguan City in south China, is happy about the proposed tax law changes.
"It means a big bowl of beef noodles can be saved for me," he said, when asked to explain what changes the amendment will bring to his daily life. He currently pays 25 yuan in personal income tax each month from his monthly salary of 2,500 yuan. If the draft amendment is adopted, he will not have to pay any tax.