China to reduce income tax

BEIJING, Nov. 21 (UPI) -- The Chinese government's head economist, Zhou Qiren, said Friday that the country's legislative body has agreed to tax reductions to stimulate the economy.

"As far as I know, the National People's Congress has already reached a consensus" to raise the individual tax income threshold, currently set at about $300 per month, Zhou said.

The official did not say where the new income threshold would be set, but he said a proposal to raise the level where the tax is triggered to about $1,100 per month was "too high," the state-run news agency, Xinhua, reported.

The tax reduction, meant to stimulate the Chinese economy, follows a $586 billion economic stimulus package announced by the Beijing government Nov. 9.