Reform of Tax System "Key" to Reducing Tax Burden

The question of how to reform China's individual income tax has become a hot topic recently. Some say the new proposals are a good starting point to rectify the dissymmetry of rights and responsibilities of taxpayers. However, some, including the author of a recent article published in Beijing News, argue that overall reform of the tax system is more important than a change in the threshold of individual income tax.

The article notes that during the national debate on individual income tax, many people have shown concern about whether the government would raise the threshold of individual income tax, and very few have asked about the general structural reform of government spending, which takes up big part of the tax revenue.

The writer adds that it has been proved in many countries that the best way to reduce the tax burden is to have tax payers pay more visible tax, rather than the turnover tax, which is invisible. As a growing number of people are concerned with how their tax is used, pressure on the government to take efficient measures to reduce unnecessary spending is likely to increase.

In conclusion, the article argues that average tax payers should not just call on the government to raise the threshold of individual income tax but also push for a reform of tax spending. And the government should also reconsider its excuse of "lack of ripened conditions" for the delayed reform of the whole tax system.