Tax Revenue of China in 2001 Tops US$182 Billion

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Last updated at: (Beijing Time) Friday, January 11, 2002

Tax Revenue of China in 2001 Tops US$182 Billion

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China's total tax revenue in 2001 reached 1,517.2 billion yuan (182.8 billion U.S. dollars), fulfilling the year's target by 113.1 percent, said said Jin Renqing, commissioner of the State Administration of Taxation (SAT) Thursday at a press conference.

The figure represents an increase of 19.8 percent, or 251.1 billion yuan (30 billion U.S. dollars), from the previous year, said Jin.

Of the total tax revenue, 1,045.3 billion yuan was collected bystate tax services, up 17.1 percent year on year; and 471.8 billion yuan was collected by local tax services, up 26.5 percent,Jin said at a press conference hosted by the Information Office ofthe State Council.

According to Jin, economic growth and improved efficiency helped the tax revenue increase by more than 120 billion yuan, while tax policies and non-recurrent factors contributed an increase of about 90 billion yuan.

In a breakdown, Jin said the total tax revenue for 2001 includes 545.2 billion yuan of domestic value added tax, up 16.8 percent year on year; 212.3 billion yuan of income tax from domestic enterprises, up 47 percent; 51.1 billion yuan of income tax from foreign-funded enterprises, up 57 percent; and 96.6 billion yuan of personal income tax, up 51 percent.

China Cuts Tax By Tens of Billion Yuan Annually

China has lowered its tax rates by tens of billion yuan annually these years, said Jin.

China has stopped collecting regulatory tax on the direction of fixed asset investment with a drop of 20 billion yuan of the tax revenue, he said.

The government has granted a 40-percent drop of income tax to enterprises that use locally made equipment for technological innovation and also lowered tax rate on the secondary real estate market.

Preferential tax policies are also given to hi-tech industries and agriculture infrastructure projects as well as programs and enterprises in west China.

Jin noted that China will carry out a taxation policy both with tax rate increase and abatement while maintaining a stable growth of tax revenue.

The tax cut does not contribute much to the country's economic development as China mainly collects indirect taxes, he said.

Timetable to Adjust Home, Foreign Enterprise Income Tax Not Set