Slowing Economy Sharply Weakens China's Tax Revenue Growth
    2012-07-25 00:32:01     Xinhua      Web Editor: Li
The Chinese government collected much less tax in the first half of this year as the economy expanded at its slowest pace since the depth of the global financial crisis, according to data released by the Ministry of Finance (MOF) on Tuesday.
Audio

The Chinese government collected much less tax in the first half of this year as the economy expanded at its slowest pace since the depth of the global financial crisis, according to data released by the Ministry of Finance (MOF) on Tuesday.

Tax revenues rose only 9.8 percent year-on-year to reach 5.49 trillion yuan (866.76 billion U.S. dollars) in the world's second-largest economy during the first six months, according to the MOF.

The growth was down significantly by 19.8 percentage points than that of the same period last year.

The sharp decline in revenue growth gives the Chinese government less room to stimulate the slowing economy.

China's economy grew 7.6 percent year-on-year in the second quarter of this year, marking the slowest expansion in three years.

The growth of all tax collected slowed drastically in the first half, with growth in value-added tax, sales tax, business tax and corporate income tax slowing 11.6 percentage points, 8.5 percentage points, 14.8 percentage points and 21 percentage points, respectively, according to the MOF.

Taxes related to the property sector, which used to contribute to the majority of local governments' income, slumped as the government maintained its tight grip over the housing market to curb price hikes.

In the first half of the year, contract tax and business tax for the property sector fell 9.9 and 8.5 percent, tumbling 37.4 and 27.9 percentage points, respectively, from a year ago.

According to an MOF spokesman, the good news is that growth in tax revenues picked up a little bit in May and June after the central bank cut banks' reserve requirement ratio and the benchmark interest rates to spur the economy.

In the January-June period, China's fiscal revenues, which consist of taxes, dividends of shares controlled by the state-owned enterprises, lottery sales income and other investment income by state funds, grew 12.2 percent year-on-year to nearly 6.4 trillion yuan, which was 19 percentage points lower than that of the same period last year, according to the MOF.

Share

               


CRIENGLISH.com claims the copyright of all material and information produced originally by our staff. No person, organization and/or company shall reproduce, disseminate or broadcast the content in any manner whatsoever without the express written permission of CRIENGLISH.com.

CRIENGLISH.com holds neither liability nor responsibility for materials attributed to any other source. Such information is provided as reportage and dissemination of information but does not necessarily reflect the opinion of or endorsement by CRI.

 
Audio Reports more »
Biz Life more »
Policy more »
Markets more »

News
China
World
Politics
Business
Sports
Showbiz
Sci-tech
Photo
Recommended
China
World
Sports
Showbiz
Travel
Video
C4
The Sound Stage
Showbiz
Travel
China Revealed
My Chinese Life
Travel
Destinations
Photo Gallery
Recommended
Learn Chinese
"In" Chinese
Chatting in Chinese
Pop Culture
Traditional Culture
Living Chinese
Chinese Studio
Chinese Class
Learn English
Special English
Pop Chart
Everyday English
Fabulous Snaps
CRI News
China.org.cn  | Xinhua  | People's Daily Online   |  CNTV.cn  | China Daily  |  Global Times  | China Job  |  China Tibet Online  | Taiwan.cn  | eBeijing  | Beijing Today  | China-Eurasia Expo  | APEC Yiwu Conference  | Chinese Embassy in S.Africa  | Chinese Embassy in Australia  | Chinese Embassy in NZ