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China"s personal income tax threshold is expected to rise to 5000 yuan ($775.5) per month from the current 3500 yuan level, according to the amendment draft on individual income tax submitted on Tuesday.

The amendment is the seventh tax overhaul since the personal income tax code of 1980.

For the first time, the taxation is expected to cover all personal income, including income from personal services and rewards and royalties writers earn.

Also for the first time, the following items are deductible from personal tax, such as the cost of children’s education and continuing education, medical fees for major diseases, interest on housing loans as well as housing rent.

The draft on individual income tax has been submitted to the bimonthly session of China"s legislative body, the Standing Committee of the National People"s Congress, for the first discussion on Tuesday.

Discussion for the tax code revision will touch upon proposing tax deductions in children"s education expenditures, medical treatment costs, housing loan interests, and housing rents, according to the draft.

Other possible adjustments include improving the tax rate structure and introducing anti-avoidance clause, according to the draft.

China"s total tax revenue in 2017 increased by 10.7 percent year-on-year to 14.4 trillion yuan, according to data from the Ministry of Finance.

Tax revenue from individuals went up by 18.6 percent year-on-year to 1.2 trillion yuan during the same period, official data showed.

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