Public opinion can influence legislation, as the vigorously debated personal income tax issue shows.
China's monthly personal income tax cutoff point was lifted to 1,600 yuan (US$198) from 1,500 yuan after drawing on public opinion at the nation's first legislative hearing last month.
For the past 10 years, it has been 800 yuan and initial legislation raised it to 1,500 yuan. But the public session on September 27 helped tip the balance to 1,600 yuan.
The parliamentary hearing has been widely praised, and China's 20-plus provincial legislative bodies also held hearings.
Senior officials said China's top legislature was studying the experience of public hearings and might finally form a regular parliamentary hearing system, in an effort to further ensure the country's legislative transparency.
The cutoff point, or exemption, of 1,600 yuan has been written into the amendment draft of the personal income tax law. The tax bill was submitted to the 18th session of the Standing Committee of the 10th National People's Congress, beginning on Saturday, for the second reading.
The amendment draft was expected to be voted for adoption at the six-day legislative session. China's monthly personal income tax cutoff point has been fixed at 800 yuan for more than 10 years.
1,500 yuan still too low
In august, the legislature read the draft of the amended law on personal income tax for the first time. The draft proposed lifting the monthly personal income tax cutoff point to 1,500 yuan, so as to reflect the nation's economic growth.
But in the parliamentary hearing, most participants held that the tax cutoff point of 1,500 yuan was still too low and should be raised.
Among 20 people who testified, six said that the deduction point of 1,500 yuan was appropriate, 12 said it should be higher and another two held that the personal income tax cutoff point should be lower than 1,500 yuan.
After deliberation, the cutoff point was raised by 100 yuan.
"The difference of 100 yuan might be a slight change for the personal income tax reform, but a 'big step forward' for the country's democratic progress," said Yang Qin, who testified at the legislative hearing. He works for the Guangdong Foshan branch of China Netcom.
Though yang testified that 2,000 yuan would be an ideal cutoff point, he still said he was satisfied with the result, because "public opinions have influenced the country's legislation and policy making."
He yongjian, an official with the Legislative Affairs Commission, said the adjustment takes into consideration not only public opinion, but also China's financial capability. State coffers can afford the 1,600 yuan exemption threshold.
(Xinhua)