In today’s talking points, Australia’s share market lowers as banks and miners weigh heavily, China unveils special individual income tax deductions, and around 100 billion Yuan tax reduction accomplished within three months after the reform of personal income tax.
Australia’s Share Market Lowers as Banks and Miners Weigh Heavily
The Australian share market opened lower on Tuesday, with index heavyweights materials and financials offsetting broader gains.
The benchmark S&P/ASX 200 index was down 12.80 points or 0.22% at 5,877.60, while the broader All Ordinaries index was down 9.90 points or 0.17% at 5,943.60. Healthcare was also trending lower, while information technology rallied as did energy and industrials.
In the financial space, Australia’s big banks sank with the Commonwealth Bank down (0.89 percent), ANZ down (0.57 percent) National Australia Bank down (0.48 percent), and Westpac Bank down (0.59 percent).
Mining stocks were mixed with BHP down (1.02 percent), Fortescue Metals unchanged (0 percent), Rio Tinto down (0.77 percent) and goldminer Newcrest up (0.04 percent).
The country’s oil and gas producers also varied with Oil Search down (0.13%), Santos unchanged (0%), and Woodside Petroleum up (0.41%).
Australia’s largest supermarket chains dropped with Coles down (0.43%), and Woolworths down (0.17%).
Meanwhile telecommunications giant Telstra rallied (0.34%), the national carrier Qantas took off (0.66%) and biomedical firm CSL sank (0.22%).
Source: Xinhua News
China Unveils Special Individual Income Tax Deductions
The State Council, China’s cabinet, announced special individual income tax deductions, in order to lower the tax burden for those who have certain expenditures.
Those expenditures cover six areas, including children’s education, continuing education, health treatment for serious diseases, housing loan interests, rent and elderly care.
China started implementing a new standard for individual income tax from October 2018. The threshold for personal income tax exemption was raised from 3,500 yuan to 5,000 yuan per month or 60,000 yuan per year.
However, as the deduction policy covers so many areas and involves complicated scenarios, new challenges facing tax collection and management will appear, which requires better social governance, said Tang Jiqiang, a professor at Southwestern University of Finance and Economics.
Source: China Daily News
Around 100 billion Yuan Tax Reduction Accomplished Within Three Months after the Reform of Personal Income Tax
A tax reduction of about 100 billion has been achieved since the reform of personal income tax was implemented more than 70 million people do not need to pay tax on their personal income.
Compared with the growth rate of tax revenue in the first four months of 2018 16.8%, the figure has gradually dropped to 5.2%. The tax revenue task for 2018 were successfully completed, with the tax revenue reaching 13.8 trillion yuan, an increase of 9.5% over the previous year.
The tax authorities at all levels should take the implementation of tax reduction and fee reduction policies as the priority of this year’s tax work to further reduce the burden on enterprises.
Source： China Daily