Anger among taxpayers over threshold's delays
Some regional taxation bureaus have been accused of violating the mainland's new personal income tax law, which this month raised the tax threshold from 2,000 yuan (HK$2,400) to 3,500 yuan, state media reported.
According to cnr.cn, the news portal of China National Radio in Beijing, numerous listeners have called in from across the country to complain to the state-run broadcaster that their local taxation bureaus had overtaxed them by sticking to the 2,000-yuan threshold.
The callers included residents of Shanghai, Tangshan in Hebei province, Wuqing in Tianjin municipality and Xiamen in Fujian province.
The State Administration of Taxation has stipulated that the new income tax law applies to all of the monthly income that earners receive, starting this month, regardless of when the work for that salary was performed, the report said.
A Shanghai resident told the radio station that he was surprised when he found that he had been taxed on the 2,000-yuan threshold for the salary he was paid on September 8.
The resident also said a local tax official told him that they had taxed all the money he had earned over 2,000 yuan because the software they were using hadn't been upgraded.
When asked by a reporter with the radio station to address the same issue, another official with the Shanghai Local Taxation Bureau told him that there were different interpretations among the media and the bureau about how the new law would be applied, specifically in regard to income earned before this month.
However, the report quoted Professor Yue Shumin, who teaches finance at Renmin University in Beijing, as saying that such a practice was illegal, adding, 'all the salary that one gets in September should be taxed in accordance with the new personal income tax law.'
Meanwhile, the Xiamen Local Taxation Bureau, which had earlier refused to raise the taxed-income threshold to 3,500 yuan, citing computer system problems, switched gears on Friday and implemented the new taxation policy, after receiving scores of complaints.
The former personal tax standard had been under widespread attack for years because it taxed whomever made more than 2,000 yuan a month, regardless of how many family members he or she had to support on the meagre income.
The mainland's tax revenue in the first half of the year, up 29.6 per cent from the same period last year