National People’s Congress representative Zhang Xuewu suggests raising the personal income tax threshold to 8,000 yuan to increase the actual income of the general earning population and boost consumer confidence.
China Economic Net learned that National People’s Congress representative and Chairman of Yankin Food, Zhang Xuewu, has prepared several suggestions for this year’s Two Sessions, covering areas such as the overseas expansion of private enterprises, technological innovation in small and medium-sized enterprises, improving residents’ income expectations, and stimulating consumption.
Zhang Xuewu mentioned that restoring and expanding demand is the key to the continuous improvement of the economy in 2024. It is necessary to use multiple approaches to increase residents’ disposable income expectations and boost consumer confidence, making people willing to spend. For this purpose, he suggests liberalizing transactions and mortgages of rural residential houses to increase farmers’ property income; strengthening the supply of urban affordable housing; and adding to residents’ income through individual subsidies and tax reductions.
Zhang Xuewu mentioned that for the low-income group, the marginal impact of individual income tax is small. Raising the minimum wage standard and increasing individual subsidies can better promote consumption. For the middle-income group, it is worth considering expanding the scope of “special additional deductions” for individual income tax and raising the standard for “special additional deductions” to use tax cuts to increase post-tax income and promote consumption.
At the same time, Zhang Xuewu suggests raising the personal income tax threshold to 8,000 yuan to increase the actual income of the general earning population and boost consumer confidence.
China Economic Net understands that during this year’s Two Sessions, Zhang Xuewu will also put forward suggestions related to the overseas expansion of private enterprises. Zhang Xuewu mentioned that the overseas expansion of private enterprises has entered a new phase, with outstanding enterprises represented by capital, technology, brands, and management accelerating their overseas layout in the form of “industrial output” to explore new growth points. To help private enterprises grasp overseas opportunities and face developmental challenges, it is suggested that the government make policy adjustments, including encouraging private enterprises to expand their overseas business; building a “going out” service platform to provide comprehensive and convenient services for private enterprises; providing private enterprises with policies for forex facilitation and financial services; supporting private enterprises in establishing international R&D centers; and conducting overseas business management personnel training.
Zhang Xuewu believes that relevant departments should work together to support the overseas expansion of private enterprises, further improve the service system for private enterprises going overseas, and provide support in platform construction, policy consultation, financing services, risk assessment, and safety guidance, helping private enterprises to better carry out international layout. They should provide policy support to private enterprises creating their own channels for production and sales overseas and promoting independent brands, enhance the protection of overseas interests, and give private enterprises more confidence to go global.
In terms of financial service supply, Zhang Xuewu suggests improving the facilitation policy of cross-border investment and financing, developing multinational corporate integrated domestic and foreign currency fund pool business, facilitating the coordination and use of funds within and outside the country for private enterprises; urging financial institutions to develop financial products and services suitable for enterprises “going global,” such as establishing overseas investment funds, optimizing the approval process for foreign investment loans, and reducing the cost of overseas investment and financing for enterprises.
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