Among the various subjects of taxation reform, the reform on the personal income tax is intriguing.

Anbound's scholars point out that, as of now, there is no information available on the actual reform proposal, however, based on the information revealed by the experts and officials with insight knowledge and taking the intention of the policy into consideration, it is highly likely that the end result of taxation reform is to increase the tax instead of reducing the tax.

In fact, this logic is not difficult to understand. The government has always been hoping to collect more tax revenues, and following the increase in the individual incomes in China, consumption is playing an increasingly important role in China’s economy.

As such, the increase in personal income tax is an inevitable policy direction.