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ICYMI: China’s State Council announced an income tax reduction aimed at consumption boost

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Chinese state media, Xinhua, had the news that the State Council issued a statement that China will further reduce individual income tax for those who have children to raise or elderly to support.

  • the measure includes higher additional deductions for individual income tax
  • special additional reductions for children’s education and caring for babies under the age of 3
  • while those for tending to elders were also raised

The Ministry of Finance and the State Taxation Administration added that the deductions will “ease financial burdens for families to raise children and care for the elderly, improve livelihoods and raise residents’ consumption capacity”.

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