By Wang Zhenghua (China Daily)
Updated: 2008-01-02 10:41

The Shanghai municipal government's income rose to more than 210 billion yuan ($28.7 billion) last year, up 31 percent on 2006, official figures for the city have shown.

The municipal taxation department reported yesterday that the financial hub generated 210.3 billion yuan - twice the figure for 2004 - on the back of a robust economy.

The increase is the second-fastest spike in government income recorded in the past decade and has helped Shanghai achieve the financial goal it set earlier last year, municipal officials said.

The tax department said the city generated a total of 731 billion yuan, up more than 52 percent on 2006, including both State and local taxes.

About 525 billion yuan was collected by the taxation bureau, providing strong financial support for the city and the nation's economic and social development, officials said.

Income tax paid by companies and individuals rose by 53 percent and 29 percent, respectively, while sales tax paid by business owners increased 28 percent year on year.

The bureau said the city's increased tax income reflected companies' greater levels of competitiveness and an improving income distribution system.

The city also attracted record contracted foreign investment of $14.86 billion, a year-on-year increase of more than 2 percent, while its international cargo trade grew 23 percent to $280 billion.

Newly approved investment in overseas areas was $630 million, up 19 percent.

It estimated $7.9 billion in real foreign investment was realized, up 11 percent on 2006. About $2.3 billion was pumped into the modern services industry, up 50 percent.