Friday, July 01, 2011

The Emperor Revealed His New Clothes

The Ministry of Treasure released data on number of Chinese tax payers in the discussion of adjusting exemption level. According to the data, by increasing the level from CNY 2,000 to CNY 3,500, the population of personal incoming tax paying Chinese decreases from 84 million to 24 million.

The number of merely 24 million Chinese earned more than CNY 3,500 cams as a shock to some observers. In recently years, Chinese has been known as big spenders in the western world. They raised up housing price in Canada and often clear entire store of luxurious goods on vacation. The number is certainly at odds with the spending power demonstrated by Chinese tourists.

No comments: