Despite surging growth in the amount of tax revenues being collected by the Chinese government, a new official report has suggested that the overall burden of taxation as a share of the national economy remains low compared to most industrialised countries.
A report published by the State Administration for Taxation at the weekend stated that tax revenues, inclusive of social security taxes, accounted for about 20% of China's gross domestic product in 2005. This, SAT stated, compares to an average of just under 30% for developing countries and an average of about 40% for industrialised economies.
Nonetheless, the SAT report conceded that China's tax burden has been rising sharply in recent years, having grown from just under 14% in 2001.
However, the report emphasises the rising tax revenues have been driven laregly by booming economic growth and foreign trade rather than by an increase in the headline level of taxation.
In January, the SAT revealed that annual revenues, excluding customs duties and agricultural levies, exceeded 3 trillion yuan (US$380 billion) for the first time in 2005.
Beijing had expected tax revenues to increase by 11%, to 2.93 trillion yuan, but rapid economic growth, which has seen China's GDP expand at a rate in excess of 9% per year in the past two years, pushed revenues above the 3 trillion yen mark.
Similar levels of economic growth are expected to push revenue collection higher still in 2006, when China's tax revenue is estimated to rise 17.5% to 3.61 trillion yuan (US$450 billion).
Beijing's eleventh five-year plan, covering 2006-2010, also envisages revenue growth fuelled by economic expansion in the longer term, forecasting that China's tax revenues will grow at an average annual rate of 13.3% over the period, as nominal GDP growth sustains an estimated 8% per annum.
By the end of 2010, tax revenues are expected to have reached 5.55 trillion yuan. .
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy & Cookies
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment