China has set 1,600 yuan ($198) per month as the new point above which residents must start paying personal income tax, raising the cut-off from a previous 800 yuan, the official Xinhua news agency said on Saturday.
The decision to double the previous cut-off came after a process that was more open than usual, including testimony at a public hearing by 20 people, including civil servants, teachers and migrant workers, selected from nearly 5,000 applicants.
"The cut-off point of 1,600 yuan has been written into the amendment draft of law on personal income tax, which was submitted to the 18th session of the Standing Committee of the 10th National People's Congress, beginning on Saturday, for the second reading," Xinhua said.
It added that the previous 800 yuan cut-off had been set for more than 10 years.
In August, China's top legislature proposed raising the cut-off to 1,500 yuan to provide tax relief to poorer citizens.