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Recently, Wang Yongjun, director of the Government Budget Research Center of the Central University of Finance and Economics, participated in the program "Tou Tou is the Way", saying that the increase in the exemption amount is of great significance to low-income groups.
Wang Yongjun pointed out that low-income groups often rely on limited income to support their daily lives, and their economic situation is relatively fragile, and any additional financial burden may affect them significantly. Therefore, as an important tool to regulate income distribution, individual income tax should give priority to protecting the interests of this part of the group. By increasing the exemption, it is possible to ensure that low-income people do not bear an excessive tax burden due to their meagre income, so as to maintain their basic standard of living.
At present, the standard for individual income tax exemption in mainland China is 5,000 yuan per month. This means that as long as an individual's monthly income does not exceed this amount, they are not subject to personal income tax. However, with the development of the economy and the increase in the price level, the income of mainland residents has greatly increased. According to the "Recruitment Salary Report of Chinese Enterprises" released by Zhaopin.com in the second quarter of 2023, the average recruitment salary of enterprises in 38 cities has reached 10,266 yuan.
Many experts and scholars have called for an increase in the amount of personal income tax exemptions. Among them, Dong Mingzhu put forward a proposal to raise the individual income tax threshold to 10,000 yuan during the two sessions. She believes that the existing 5,000 yuan threshold has been implemented for many years and can no longer adapt to the current level of economic and social development. Raising the threshold will not only reduce the burden on low-income groups, but also help stimulate consumption and expand domestic demand.
In addition to raising the tax threshold, Dong Mingzhu also suggested further improving the tiered tax rate. She believes that on the basis of the highest level of taxable income grading of 960,000 yuan/year, an additional level of 2 million yuan/year, and at the same time optimize and adjust the level and range of the excess progressive tax rate, can make the tax reduction more inclined to the middle and low-income groups.
In recent years, the per capita disposable income of mainland residents has shown an upward trend year by year
From 2013 to 2022, the per capita disposable income of Chinese residents showed an upward trend year by year, while the growth rate showed a gradual downward trend in fluctuations, and the per capita disposable income of Chinese residents in 2022 was 36,900 yuan, a year-on-year increase of 2.9%. In the first half of 2023, the per capita disposable income of Chinese residents will be 19,700 yuan, a year-on-year increase of 5.8%.
The disposable income of Zengcheng residents is at the best level in the country
In 2022, the per capita disposable income of urban residents in Zengcheng will be 61,164 yuan, more than 10,000 yuan higher than the national per capita disposable income of urban residents of 49,283 yuan. The per capita disposable income of rural residents was 33,935 yuan, more than 10,000 yuan higher than the national per capita disposable income of rural residents of 20,133 yuan. The per capita disposable income of residents in Zengcheng District is relatively good. The growth rate of per capita disposable income in Zengcheng is slightly higher than the overall average of Guangzhou, regardless of whether it is urban or rural residents.
The structure of China's per capita consumption expenditure in the first half of 2015-2023
In 2022, the per capita disposable income of Chinese residents was 36,883 yuan, and the per capita consumption expenditure was 24,538 yuan, both of which increased from 2021. The proportion of household consumption expenditure on food, tobacco and alcohol in total expenditure is on the rise. In the first half of 2023, the per capita consumption expenditure on food, tobacco and alcohol will be 3,907 yuan, an increase of 6.0%, accounting for 30.7% of the per capita consumption expenditure. With the improvement of residents' income level, the purchasing power has been continuously enhanced, stimulating social consumption and driving consumption upgrading. The increase in residents' consumption demand for food, tobacco and alcohol has given rise to diversified and personalized new consumer demand, and residents' sensitivity to price factors has gradually decreased.
According to the World Bank, the global average per capita income in 2019 was about US$11,570 (RMB: 83,395 yuan). However, per capita incomes in developed countries are higher than this average. For example, the average per capita income of European countries is about US$33,000 (RMB: 237,861.8 yuan), and the income level of Chinese residents is still relatively low compared to developed countries.
With the development of the economy and the impact of inflation, the cost of living of low-income people is gradually increasing, and increasing the individual income tax exemption can allow them to have more disposable income and improve their quality of life. At the same time, it also helps to stimulate consumption and promote economic growth, contributing to social stability and prosperity.
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