A recent survey on individual income tax reform shows about 40 percent people support the idea that a person should pay the tax only when his/her monthly salary is more than average 1-sqm house price. Many people now hope that individual income tax would be linked with housing prices, says an article in China Economic Net. Excerpts:

The proposal to link individual income tax with housing prices became a discussing point among people after the Individual Income Tax Law Amendment (draft) was submitted to the National People's Congress Standing Committee for approval recently.

Though implementing such a measure would be difficult, the suggestion reflects people's feelings. If individual income tax rules are not changed, people would have to shoulder a heavier burden.

Many people say individual income tax reform should be aimed at linking the tax with existing price levels.

The huge gap between skyrocketing housing prices and the average individual income increases low- and medium-income people's burdens.

China introduced individual income tax in 1980s, and there have been few changes in the rules since then.

Given the low growth in ordinary people's income, widening wealth gap and inflationary pressure, individual income tax has not played its expected role of facilitating fair income redistribution.

Besides, lack of transparency in tax collection, weak supervision of the high-income group and the failure of high taxes to improve public services call for raising the individual income tax threshold.

The proposal to relate individual income tax with housing prices is the call of the people and the government should do something to ease their hardship.