China plans to increase its taxes as they revise its civil code. The legislators in the country are convening to discuss the proposed increase as they draft their new civil code. The new tax reform will increase the countries personal income tax thresholds from 3,500 yuan to 5,000 yuan every month.
Six drafts sections of the civil code were passed on China's legislature on Monday as the start congress starts the second phase of the creation of the new code. It was presented to the National People's Congress Standing Committee during their bimonthly session.
Many of the policies in the code were copied from existing laws. The six draft sections include policies of the country involving property, personality rights and marriage, and inheritance.
It was reported in the Xinhuanet that the increase in taxes will cover civil included in the six draft sections.
Aside from the increase, tax deductions are also expected in the reform. The plan is reported to include tax deductions of elderly care responsibilities. This will be added to the list of other tax deductions in the country including existing deductions for continuing education, medical treatment for serious cases, and housing costs.
The Chinese Congress also changes the rate of taxes governing new building on farmland and vehicle purchases. They are also considering the possibility of giving up their law on family size. There reports stating that family planning policies have been removed civil code.
China is controversial in its one-child policy that was first applied in 1979 and was ended in 2016 to supplement the need to increase the Country's population. The policy was later changed into a two-child policy to cure the country's problem of its aging population.
It is reported that the new code might get rid of the restrictions to increase family size. Some examples of the changes in the civil code include policies on divorce especially on cooling periods where the new draft may implement that divorce application may be revoked by either side of the couple within the cooling-off period of one month after submission of papers to the authority.
The new draft also included punitive compensations to be imposed on the intentional violation is laws and regulations about actions that damage the environment.
The draft also includes policies on personality rights which is a separate section from the existing people's personal rights. It highlights the protection of citizen's personal dignity.
Meng Qiang, a civil law scholar with the civil law society said that the draft clarifies the protection of citizen's privacy and personal information.
