Reduce income tax

The draft amendment to the Personal Income Tax Law hardly amounts to a sufficient policy response to address the urgent need to boost domestic consumption.

Chinese legislators who deliberated it for the first time on Wednesday should make it clear to policymakers that more tax relief is needed if they are serious about setting in motion a lasting domestic consumption boom.

To facilitate the transformation of China's development model toward consumer-led growth, the government has vowed to do whatever it can to encourage its people to spend more.