<HTML><HEAD> <META name=GENERATOR content="MSHTML 8.00.6001.19019"></HEAD> <BODY><SPAN class=story-date><SPAN class=date>30 June 2011</SPAN> <SPAN class=time-text>Last updated at </SPAN><SPAN class=time>11:43 GMT</SPAN> </SPAN> <DIV id=page-bookmark-links-head class=share-help> <H3>Share this page</H3> <UL> <LI class=email><A title="Email this story" href="http://newsvote.bbc.co.uk/mpapps/pagetools/email/www.bbc.co.uk/news/business-13972496">Email</A> <LI class=print><A title="Print this story" href="http://www.bbc.co.uk/news/business-13972496?print=true">Print</A> </LI></UL><!-- Social media icons by Paul Annet | http://nicepaul.com/icons --> <DIV style="DISPLAY: block" id=top-share-toolbar class="bbc-st bbc-st-slim bbc-st-colour bbc-st-dark bbc-st-force-flash-hide bbc-st-disable-facebook-panel"> <P class=bbc-st-basic><A href="http://www.bbc.co.uk/modules/sharetools/share?url=http%3A%2F%2Fwww.bbc.co.uk%2Fnews%2Fbusiness-13972496&amp;title=BBC%20News%20-%20China%20raises%20income%20tax%20threshold&amp;appId=news&amp;facebook-message=">Share this page</A></P> <DIV class="bbc-st-wrapper bbc-st-rst bbc-st-v1"> <DIV class=bbc-st-count><SPAN title="This page has been shared 42 times">42</SPAN></DIV> <UL class=bbc-st-buttons> <LI class=bbc-st-share-cta><A title="Share this page to other places" href="http://www.bbc.co.uk/news/business-13972496#">Share</A> <LI class=bbc-st-facebook-cta><A title="Share this page on Facebook" href="http://www.bbc.co.uk/news/business-13972496#">Facebook</A> <LI class=bbc-st-twitter-cta><A title="Share this page on Twitter" href="http://www.bbc.co.uk/news/business-13972496#">Twitter</A></LI></UL></DIV></DIV></DIV> <H1 class=story-header>China raises income tax threshold</H1> <DIV class="caption body-narrow-width"><IMG alt="Yuan notes being counted" src="cts_53777288_yuan_afp.jpg" width=304 height=171> <SPAN style="WIDTH: 304px">Controlling inflation is the Chinese government's top priority this year</SPAN> </DIV> <DIV class="story-feature related narrow"><A class=hidden href="http://www.bbc.co.uk/news/business-13972496#story_continues_1">Continue reading the main story</A> <H2>Related Stories</H2> <UL class=related-links-list> <LI><A href="http://www.bbc.co.uk/news/business-13945072">How unequal has China become?</A> <LI><A href="http://www.bbc.co.uk/news/business-13925700">Why is China important for the UK?</A> </LI></UL></DIV> <P id=story_continues_1 class=introduction>China has decided to raise the level at which people start paying income tax.</P> <P>The standing committee of the National People's Congress is lifting the threshold from 2,000 yuan ($309; бя193) to 3,500 yuan a month.</P> <P>The official Xinhua news agency said the committee had decided against a previous suggestion of 3,000 yuan after a strong online response from citizens.</P> <P>It said that 82,707 citizens commented on the draft plans, of whom 83% said the threshold should be higher.</P> <P>"The change was made thanks to the appeal by netizens and comments that we received," committee member Ye Qing said on the social networking site Weibo.</P> <P>The committee said that raising the threshold was "necessary and timely", would reduce the tax burden on people with low incomes and would also help to reduce inequality.</P> <P>The government has been promising to take action to help lower paid workers, who are being hit by rising inflation.</P> <P>Only about 12% of the workforce earn more than 3,000 yuan a month</P></BODY></HTML>