Article: Empirical analysis of the impact of personal income tax reform on household consumption: based on 2016-2022 microdata Journal: International Journal of Information and Communication Technology (IJICT) 2026 Vol.27 No.67 pp.1 - 22 Abstract: This study leverages microdata from 2016 to 2022 and empirically analyse the impact of China's personal income tax reform on household consumption. According to the results, the 2019 tax reform, including measures like raising the deduction threshold and readjusting tax rate, significantly increased residents' disposable income, thereby boosting consumption levels. However, there are still certain issues incomplete special additional deductions, a lack of consideration for household income and expenditure, and dubious justifications for deduction amounts. These issues contribute to perceived inequities in tax burdens and a decline in attitudes toward tax compliance to address these challenges, this study proposes several recommendations to address these issues, including implementing joint family tax filing, reasonably adjusting deduction standards, optimising the tax rate structure, and optimising tax administration systems. These recommendations aim to further stimulate household consumption and expand the national economy. The findings not only provide a new perspective on the economic effects of income tax reform but also offer empirical evidence to inform improvements in tax policy. Inderscience Publishers - linking academia, business and industry through research

Title: Empirical analysis of the impact of personal income tax reform on household consumption: based on 2016-2022 microdata

Authors: Zhifeng Li; Weixing Fan

Addresses: School of Accountancy, Guangzhou Huashang College, Guangzhou, 511300, China ' School of Accountancy, Guangzhou Huashang College, Guangzhou, 511300, China

Abstract: This study leverages microdata from 2016 to 2022 and empirically analyse the impact of China's personal income tax reform on household consumption. According to the results, the 2019 tax reform, including measures like raising the deduction threshold and readjusting tax rate, significantly increased residents' disposable income, thereby boosting consumption levels. However, there are still certain issues incomplete special additional deductions, a lack of consideration for household income and expenditure, and dubious justifications for deduction amounts. These issues contribute to perceived inequities in tax burdens and a decline in attitudes toward tax compliance to address these challenges, this study proposes several recommendations to address these issues, including implementing joint family tax filing, reasonably adjusting deduction standards, optimising the tax rate structure, and optimising tax administration systems. These recommendations aim to further stimulate household consumption and expand the national economy. The findings not only provide a new perspective on the economic effects of income tax reform but also offer empirical evidence to inform improvements in tax policy.

Keywords: personal income tax reform; household consumption; special additional deductions; consumption stimulus; economic effect.

DOI: 10.1504/IJICT.2026.154213

International Journal of Information and Communication Technology, 2026 Vol.27 No.67, pp.1 - 22

Received: 11 Nov 2025
Accepted: 19 Dec 2025
Published online: 16 Jun 2026 *

Title: Empirical analysis of the impact of personal income tax reform on household consumption: based on 2016-2022 microdata

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