Research on the Lottery Tax Exemption Policy under the Individual Income Tax Law from the Perspective of Social Equity—With Commentary on the "220 Million Yuan Lottery Tax Exemption Incident"

Abstract

Taking the "220 Million Yuan Lottery Tax Exemption Incident" as a starting point, this paper examines the lottery tax exemption policy under the Individual Income Tax Law from the perspective of social equity. It finds that the previous vague definition of "one-time winning income" enabled tax avoidance through decentralized betting, violating tax fairness. The new policy redefines this concept, effectively closing the loophole, yet further refinement is needed. This paper proposes optimizing the tax mechanism by exploring progressive rates, strengthening supervision over large winnings, elevating the legislative level, and dynamically adjusting the exemption threshold, so as to balance lottery market vitality and tax justice. The study provides theoretical and practical references for improving incidental income taxation and promoting the healthy development of the lottery industry.