According to the latest data from the State Administration of Taxation, October saw 31.6 billion yuan ($4.58 billion) of person income tax cuts. The threshold was raised to 5,000 yuan ($714) and the scope of the low-grade tax rate was expanded, with six additional special deductions.

The special deduction will be officially implemented from January 1, 2019. It is expected to increase the disposable income of residents and stimulate consumption.

These improvements, which increase the money in people's pockets, help contribute to an overall sustainable market.

Multi-dimensional improvements to the consumer market by individual income tax reform refer to not only the increased confidence in the market but also a multiplication effect on the market as a whole.

Reducing the burden on enterprises can fuel the economy from a supply perspective while cutting taxes for employees can help in boosting consumption.

In addition to the cuts in income tax, other instruments being used to boost spending and growth include special deductions and a package of comprehensive benefit measures.