Historical changes of interest tax collection standards

At the beginning of 1 and 1950, China levied interest tax with a tax rate of 5%. After the People's Bank of China lowered the interest rate on 1959, the state immediately stopped collecting interest tax.

2. The personal income tax law passed in1980 and the personal income tax law revised in 1993 once again listed interest tax as a taxable item. However, in view of the small amount of personal savings deposits at that time and the tight supply of materials, the income tax on savings interest was subsequently exempted.

3. 1999 the State Council decided to resume collecting interest tax from 10/day, with a tax rate of 20%.

4. On July 20, 2007, the State Council made a decision to adjust the tax rate of interest income from savings deposits from 20% to 5% from August 15, 2007.

5. In 2008, the State Council decided to temporarily exempt interest tax from June 9, 2008.

Extended data

function

First, tax affects the income level of residents and regulates wealth inequality and the gap between the rich and the poor.

Second, the change of real interest rate affects residents' savings.

Third, promote the transfer of household savings to the investment field.

By reducing the opportunity cost of private investment, we can promote the increase of private investment and form a lasting growth mechanism of social investment.

Fourth, curb the growth of savings and expand consumer spending.

Fifth, increase fiscal revenue.

As a stable source of fiscal revenue, interest tax is increasing every year. In 2006, the total interest tax reached 45.9 billion yuan, accounting for 1.2% of the total tax revenue.

At the beginning of the interest tax, the growth rate of China's residents' savings deposits did show a significant downward trend, the total retail sales of consumer goods in the whole society rose sharply, and household consumption began to show an active situation.

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