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China's State Council Wednesday announced plans to ease the tax burden on lower and middle-income workers by raising the minimum threshold. The plan would also result in other changes to the country's nine income tax brackets.
The changes will need to be approved by the legislature's Standing Committee, but China's official news agency says the goal is to encourage more people to start their own businesses.
Xinhua says China last raised the minimum threshold for income taxes in March 2008, but that some economists said at the time that the increase was not enough.
Also Wednesday, China's central bank published plans calling for the increased use of Chinese currency in cross-border trade.
The bank said it will expand the use of the yuan by importers and exporters.
China has been trying to encourage use of the yuan to make it a more prominent currency in global finances.
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