China has decided to cut income taxes for middle-income residents by raising the threshold for income tax payments, China's cabinet said on Wednesday, but did not give any details on the size of the tax cut.
The decision was made at a routine State Council meeting on Wednesday chaired by Premier Wen Jiabao.
According to local media reports, China may increase the threshold for personal income tax payment to 3,000 yuan ($456.6) a month, from the current 2,000 yuan.
As inflation accelerates and residents' share in overall national income shrinks, Chinese urban workers have been calling for personal income tax cuts.
China's personal income tax revenues ballooned in the last decade to 483.7 billion yuan in 2010, from 41.4 billion yuan in 1999.