China's First Quarter Tax Revenue Exceeds Expectations

Mary Swire, Tax-news.com, Hong Kong

04 April 2001

According to State media, China's State Administration of Taxation has collected a colossal 305.828 billion yuan (US$36.94 billion) in the first quarter of 2001 which is up by 30.9 per cent on the same quarter of last year. Jin Renqing, director of the taxation department, said that the revenue was much higher than the State anticipated.

China's National Bureau of Statistics noted that collective income from both VAT and consumption taxes increased by 32.58 billion yuan (32.7 per cent) to 132.29 billion yuan. Making an overall improved performance was corporate income tax totalling 39.02 billion yuan which was up a huge 57.5 per cent on last year.

Not all taxes were on the increase with tax accrued on imported goods and securities stamp duties falling by 3.2 billion yuan compared to last year's first quarter but the remainder of the tax revenue results left the state in no doubt that China's economy was thriving particularly on a macro level.

The revenue will go towards government spending to maintain the country's economic growth. A government researcher told the South China Morning Post that the economy would have grown more than 7 per cent this first quarter.

Recommended