China saved nearly 200 billion yuan (US$29.7 billion) in just four months following the nation’s income tax reform, said Wang Jun, the minister of State Administration of Taxation.

Income tax revenue marked a 20% year-on-year growth in nine months to September 2018, however after income tax reform took effect in October last year, income tax revenue for the four months of October 2018 to January 2019 was reduced by 14.2%, Wang said in a Securities Times report.

Starting from October 1, 2018, China lifted the tax threshold of individual income tax from 3,500 yuan (US$520) to 5,000 yuan (US$744) and offered several tax exemption items to help relieve the tax burden of lower- and middle-income people.

About 80 million people no longer need to pay income tax following the reform and about 65 million people saved 70%, Wang said, noting that it reflects China’s determined efforts to relieve tax pressure on the lower income workers.