Chinese Tax Authorities Report 21% Rise In Revenue Collection

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

30 November 2001

The Chinese State Administration of Taxation announced this week that revenue collections for the first ten months of this year were up 21% on the same period in 2000.

Tax revenues have jumped 218.3 billion yuan ($26.39 billion) to 1.25 trillion yuan, and according to the state tax authorities, this accounts for around 93.3% of the predicted tax revenue for this year.

The Administration is delighted with the collection figures so far, and announced that all of the major revenue areas- value added tax, consumption taxes, enterprise taxes, and individual income tax- have seen substantial increases.

Speaking earlier this week, a spokesman for the SAT observed that the taxation gap between the eastern region and the central and western regions of the country has continued to shrink. He put the bumper revenue collections down to China's relatively healthy economic growth in a time when many other world economies are suffering, improvements in the efficiency of the tax department, and an increasing public awareness of the need to pay taxes, coupled with falling tax evasion.

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