Tax revenues pour in

08:53, August 02, 2010      

Email | Print | Subscribe | Comments | Forum 

By Li Woke

China's tax revenue rose 31 percent to 3.86 trillion ($569.78 billion) over the past six months, even though the country's manufacturing slowed down, the Ministry of Finance said Friday.

"The rapid growth of tax revenue was mostly driven by the economic rebound," the ministry said in a statement posted on its website.

The Chinese economy grew at 10.3 percent in the second quarter, slowing from the blistering 11.9 percent growth in the previous quarter and the 10.7 percent in the final quarter of 2009.

China's import industries surged 52.7 percent during the period compared to the same time last year. Sales of commercial houses increased 38.4 percent compared to last year and auto sales surged a year-on-year 53.3 percent over the past five months.

Personal income tax revenue increased 22 percent in the first half of 2010, compared the to the same time last year. In 2009, the personal income tax rose 6.1 percent to 394.93 billion yuan ($58.29 billion) compared to the previous year. Personal income tax accounts for 6.8 percent of the country's total tax revenue.

"The tax revenues were up so much this year because last year's base was low," the Finance Ministry said.

In 2009, China's tax revenue came to 6.31 trillion yuan ($931.43 billion), up 9.1 percent compared with the year of 2008.

Last week, the China Federation of Logistics & Purchasing released the Purchase Man-agement Index (PMI) for July, which fell to 51.2 from 52.1 in June, the lowest level since March 2009.

A PMI reading above 50 indicates expansion in the manufacturing sector.

"The slowdown seemed concentrated in heavy industry, partly reflecting a government campaign to close inefficient businesses to meet energy-saving goals. This does not necessarily reflect weakening in the underlying economic fundamentals," Bloomberg quoted Wang Qing, chief economist with Morgan Stanley, as saying.

But even as revenues rise, the government is levying more new taxes.

In June, the central government levied a 5 percent resource tax in Northwest China's Xinjiang Uyghur Autonomous Region on coal, oil and natural gas in order to boost the region's economy.

Source: Global Times


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Staff members watch a screen showing the blast-off of the Long March-2FT1 carrier rocket loaded with Tiangong-1 unmanned space lab module at Beijing Aerospace Control Center, Sept. 29, 2011. Commander-in-chief of China's manned space program Chang Wanquan announced Thursday night that the launch of Tiangong-1 space lab module was successful. (Xinhua/Wang Shen)
  • Chinese President Hu Jintao watches the launch of Tiangong-1 space lab module at Beijing Aerospace Control Center in Beijing, capital of China, Sept. 29, 2011. Other members of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, including Wu Bangguo, Jia Qinglin, Li Changchun, Xi Jinping, Li Keqiang and Zhou Yongkang, are also present. (Xinhua/Rao Aimin)
  • The graphics shows the launch procedures of the carrier rocket of Tiangong-1 space lab module, Long March-2FT1 on Sept. 29, 2011. (Xinhua/Lu Zhe)
  • Image taken from Beijing Aerospace Control Center shows a Long March-2FT1 carrier rocket loaded with Tiangong-1 unmanned space lab module blasting off from the launch pad at the Jiuquan Satellite Launch Center in northwest China's Gansu Province, Sept. 29, 2011. (Xinhua)
  • On Sept. 28, tourists travel around the Mingshashan Scenic Area in Dunhuang, Gansu province by camel. With the National Day vacation right around the corner, more and more tourists from home and abroad are going to Dunhuang. Riding on a camel, they travel in the desert to enjoy the cities rare form of natural scenery. (Xinhua/Zhang Weixian)
  • Chinese forest armed forces work together with forest firefighters on Sept. 28. (Xinhua/Chai Liren)
Hot Forum Discussion