Income Tax Cut: NPC deputy proposes more improvements in China's latest income tax reforms

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Back to the topic of tax reforms. In the first three months since the tax cuts were announced, some 100 billion yuan, or nearly 15 billion US dollars' worth, in income taxes have been reduced nationwide. Reporter Wang Mengzhen spoke with some taxpayers about how these changes have manifested in their own income. She also talked to an NPC deputy, who has proposed even more tax deductions.

A typical working day for migrant worker Zhu Qiang and his wife at a construction site in the Chinese capital.

But at today's lunch break, the couple and their co-workeers are digesting something new - China's latest income tax policies and something important to everyone here.

With the help of tax professionals, the workers learn to apply for tax deduction themselves using a new mobile app developed by China's tax authorities. And they've already seen changes in their recent paychecks.

ZHU QIANG, CONSTRUCTION WORKER CHINA CONSTRUCTION THIRD BUREAU FIRST ENGINEERING CO "My wife and I have seen our salaries go up by some 300 hundred yuan monthly starting from this year. So we could spend more on our children's education and on health care for our parents."

Basically, the fresh income tax cuts include three major changes: the minimum taxable income has been raised to 5,000 yuan; the tax rates have been re-adapted; and the county has introduced for the first time ever what's called itemized deductions.

The six items eligible for deductions cover six key aspects of everyday life, including expenses for children's education, continuing adult education, healthcare for serious illnesses, housing loans, housing rent and support for the elderly.

And this is the 7th year accounting professor Lu Xin is serving as an NPC deputy, witnessing tax reforms over the years.

LU XIN NPC DEPUTY "The latest reform is tremendous and it's gradually approaching the international common practices. This is an important first step, as we have gradually built up the framework of the country's personal income taxation model."

At this year's two sessions, professor Lu proposes further improvement measures.

LU XIN NPC DEPUTY "This year, I am raising a motion on one of the six deduction items. I think we also need to take taxpayer's spouses into account when it comes to support for the elderly, and this could also be applied to the care for children. That's why I suggest we should gradually shift our income taxation from individual-based units to household-based."

WANG MENGZHEN BEIJING "This is the 7th amendment of China's individual income tax law and it's said to be the largest-scale tax reform in more than two decades. With more business tax cuts on the way, insiders say it remains to be seen on how much this could help boost the country's consumption. Wang Mengzhen, CGTN, Beijing."