An official with the State Administration of Taxation said that China's personal income tax revenue came to 173.7 billion yuan in 2004, making it the fourth largest sources of tax revenue.
The Standing Committee of the 10th National People's Congress passed the revised version of the personal income tax law on Oct. 27. The amount above 1600 yuan per month will be taxable according to the law. Under the old practice, people with a monthly salary of 800 yuan had to pay tax.
This means the public finance will be reduced by 28 billion yuan per year.
By People's Daily Online