China set to cut tax rates for middle classes in bid to stimulate consumer spending
Monthly allowance expected to rise by 40pc to US$775, while mortgage interest payments, education and medical costs to be made tax deductible
China’s middle classes could soon be much better off thanks to a raft of personal tax incentives under consideration by the government.
As well as raising workers’ monthly personal allowance to 5,000 yuan (US$775) from 3,500 yuan, the changes will make interest payments on mortgage loans, and education, training and medical expenses tax deductible.
The proposals have already been drawn up and are expected to be endorsed by the National People’s Congress, China’s legislature, this week, Xinhua reported.
At the same time, the government’s revenue from personal income tax in the first five months of the year rose 20.6 per cent from the equivalent period of 2017.
