China Announces Double Digit Growth In Tax Collection

by Mary Swire, Tax-News.com, Hong Kong

08 November 2002

The Chinese State Administration of Taxation announced on Wednesday that tax revenue for the first ten months of this year was up by some 13.4% on the same period last year.

Tax revenue for the year to the end of October totaled 1.4195 trillion yuan ($173.1 billion), as a result of 168 billion yuan ($20 billion) in additional revenue collected so far.

Speaking earlier this week, a spokesman for the tax authority attributed this double digit leap in revenue collection to sustained and rapid economic growth.

Meanwhile, the World Bank has raised its 2002 and 2003 growth forecasts for China to 7.7% and 7.5% respectively, explaining that government investment in infrastructure, an interest rate cut and a civil service pay increase all helped the Chinese economy to regain momentum.

'[The growth momentum] was due to the combination of an increase in external demand resulting from moderate recovery in the global economy and expanding foreign direct investment, as well as the effect of the domestic stimulative measures,' the World Bank announced on Wednesday.

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