China´s top legislature approves minister nomination, adopts a number of bills

Source: Xinhua | 12-29-2007 15:08

BEIJING, Dec. 29 (Xinhua) -- China's top legislature closed its weeklong bimonthly session Saturday morning, approving the nomination of the new minister of commerce and adopting a number of bills, including one to raise the country's monthly individual income tax levy threshold.

Lawmakers voted to approve the nomination of Chen Deming, former governor of Shaanxi Province, as the country's new minister of commerce. Chen, born in 1949, replaces 58-year-old Bo Xilai, who has been appointed Communist Party chief of southwestern China's Chongqing municipality.

The amendment to the law on individual income tax raises the country's monthly individual income tax levy threshold from the current 1,600 yuan (218 U.S. dollars) to 2,000 yuan.

The increase was believed to relieve the economic burden of medium- and low-income earners amid the recent price increase of some goods. The amendment will take effect on March 1, 2008.

China's law on individual income tax has been amended three times over the past five years. In October, 2005, the Standing Committee of the National People's Congress (NPC) changed the law to raise the individual income tax levy threshold from 800 yuan to1,600.

In last June, the legislature authorized the State Council to suspend or cut the 20-percent tax on interest earned on personal savings according to economic and social situations.

"The three amendments were made to meet the increase of people's living expenses and aimed at easing the tax burden of medium- and low-income families," Wu Bangguo, NPC Standing Committee chairman, said at the closing session.