State Sees Tax Revenue IncreaseChina's steady economic development has helped bring in more tax revenue to the State.The State Administration of Taxation said tax departments across the nation collected 1,009.5 billion yuan (US$121.6 billion) of tax revenue during the first eight months of this year, an increase of 24.5 per cent from the same period last year. Value-added tax, consumption tax and income tax are the major contributors to the revenue increase, due largely to the improvement of companies' performances, the administration said. Ni Hongri, a research fellow with the Development Research Centre under the State Council, said the promising tax revenue situation will continue in the remaining months as the country's economy keeps the momentum of steady development. The National Bureau of Statistics said China's economic growth may reach or even exceed the target of 7 per cent in 2001. Zhang Peisen, a senior researcher with the Taxation Research Institute under the State Administration of Taxation, said the tax revenue increase will continue even after China's accession to the World Trade Organization (WTO) when China will slash tariffs on hundreds of imports. "The country's entry into the WTO will stimulate the national economy, which will give more resources to the taxation administration,'' Zhang said. A growth in gross domestic product (GDP) stemming from the WTO entry will naturally lead to more taxes, he said. Figures from the State Administration of Taxation indicate GDP growth last year contributed about 155 billion yuan (US$18.7 billion) to tax revenue increases, two-thirds of the total increase. Meanwhile, tax reforms will make the system more efficient and compatible with international practice. China plans to gradually shift its value-added tax levy. Instead of taxing production, it will target consumption. The country will also expand the scope of consumption taxes to cover more goods and services. Source: China Daily |
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