Finance Minister Xiao Jie addresses a press conference during the Fifth Session of the 12th National People's Congress in Beijing, March 7, 2017. (Photo :China News Service/Wei Liang)
(ECNS) -- China is still in the process of working out a comprehensive reform plan for individual income tax and will make full consideration of people's consumption level, said Finance Minister Xiao Jie.
At a press conference during the Fifth Session of the 12th National People's Congress in Beijing, Xiao said the overall idea is to create an individual income tax system to meet specific situations. [Special coverage]
Xiao was responding to a question at the press conference whether the government will offer tax support to families who want to have a second child but find it hard to shoulder the increased expense.
He said the new system will look at household expenses when laying income tax on individuals. Family spending, such as educational costs for a second child, will come into consideration.
"We will consider resident consumption level to determine whether to increase the threshold for income tax" and "make the increase when the time is right," said Xiao.
More than half of Chinese parents have no plans for a second child mainly due to the financial burden, according to a report by All-China Women's Federation.
