Individual tax cuts to boost consumption: experts

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China's State Council has announced special tax deductions for individuals with certain expenditures. Experts believe these tax cuts will boost China's domestic consumption.

"The most important thing of this reform is to reduce the income tax burden of low-and-middle-income individuals and increase their disposable income after tax. It is very helpful to stimulate consumption and enhance the consumption ability of the people," said Zhu Qing, a professor at the Renmin University of China.

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Temporary measures and a revised individual income tax law will kick in on January 1, 2019.

As per the new law, a rebate of 1,000 yuan (about 145 U.S. dollars) will be given each month for educational expenses per child.

For people in pursuit of continuing education, a rebate of 400 yuan (nearly 58 U.S. dollars) will be granted per degree or 3,600 yuan (around 522 U.S. dollars) per year for professional qualification programs.

"Education is related to the quality of China's population and the level of science and technology in the future. Income tax deductions related to education signify the importance of education in China," Zhu explained.

The abatements also cover other areas, including medical treatment for serious diseases, mortgage interest, rent, and elderly care.

Zhu mentioned that new tax measures also show that China's individual income tax system is progressing well in accordance with international standards of developed countries.

(CGTN's Jin Yang also contributed to the story.)