China's tax revenue up 27.4% in Jan-Sept
Updated: 2011-10-21 08:59
BEIJING -- China's tax revenue rose 27.4 percent year-on-year to 7.12 trillion yuan (about $1.12 trillion) in the first three quarters, boosted by a combination of expanding economic activity, price increases and policy adjustments, the Ministry of Finance announced on Thursday.
From January to September, revenue from value-added taxes, which account for 25.5 percent of the country's total tax revenues, increased 18.7 percent from a year earlier to reach 1.81 trillion yuan, the ministry said.
Sales taxes, business and personal income taxes saw a year-on-year increase of 24 percent, 35.8 percent and 34.4 percent, respectively.
Gross consumption taxes, which account for 7.7 percent of China's total taxes, increased 17.7 percent year-on-year to reach 552.37 billion yuan in the first nine months.
The MOF said the growth was largely the outcome of a steadily expanding economy and accompanying inflation.
Industrial value-added output rose 14.2 percent year-on-year during the January-August period. Fixed-asset investment rose 25 percent year-on-year in the first eight months, while the country's retail sales expanded 16.9 percent from a year earlier.
The country's Producer Price Index (PPI), a major measure of inflation at the wholesale level, rose 7.1 percent in the first eight months of the year, while the consumer price index (CPI), a main gauge of inflation, has climbed 5.6 percent year-on-year, fueling tax revenue that was computed with the current prices.
On a quarterly basis, tax revenue growth rates suffered a slide, with growth in the first, second and third quarters standing at 32.4 percent, 25.2 percent and 22.6 percent, respectively.
The MOF attributed the quarterly growth downdraft to China's slowing economic activity.
China's economy expanded 9.1 percent year-on-year in the third quarter of the year, down from 9.5 percent in the second quarter and 9.7 percent in the first quarter.
A series of policy adjustments introduced in the third quarter further contributed to the reduction in taxes, including a slash of imported tariffs on certain resources starting in July and personal income tax reforms that took effect in September, the MOF said.
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