Our taxes are rising, and China - are falling
• Our taxes are rising, and China - are falling
Against the backdrop of worsening trade conflict with the United States, Chinese authorities are taking measures to support the economy: they plan to cut taxes for most categories of individuals. In particular, they again raised the threshold for personal income tax-free. Now, the Chinese worker with a salary of less than 5 thousand. Yuan a month (US $ 750 or 51 000 rubles) is exempt from tax on the income of natural persons (PIT).
The increase in the amount of money in your wallet a person remaining after taxes - the key that opens the wallet for shopping. Therefore, China's State Council said that the reduction and elimination of taxes will lead to "increase the level of consumption and an increase in income of the population", amid slowing economic growth and the difficulties companies due to lack of liquidity and low demand.
"Tax cuts and spending cuts - are key initiatives necessary to pursue an active fiscal policy and ensure the stability of the housekeeper."
The same threshold wage, tax-free, it was just $ 600. In China, a progressive income tax. So if the wage is less than $ 825, the taxpayer is required to pay 5 percent of the total amount of his salary. When the salary to $ 1,000, the tax rate increases to 10 percent. If the wage is the amount in the range of $ 1,350, that person must be expelled to the state budget to 15 percent.
According to the financial newspaper, a tax cut will not cause significant damage to the budget as tax revenue line on the income of natural persons does not play such a significant role. Last year, 180 billion dollars were collected in China. Income tax, which amounted to only 8% of all tax revenues. Last year, tax revenues in China grew by 11%, including income tax - 19%. The basic tax is the VAT in the country last year, it accounted for 39% of all tax revenues. The share of corporate income tax amounted to 22% of tax revenues.
At the same time in Russia discussed the possibility of increasing the rate of personal income tax to 15% with the introduction of non-taxable minimum spring of this year.