Chinese Tax Revenues Set To Grow By 17.5% In 2006

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

22 December 2005

China's tax revenue is estimated to rise 17.5% to 3.61 trillion yuan (US$450 billion) in 2006 according to a report carried by China.org.

Citing the Chinese economic blue book published by the Chinese Academy of Social Sciences (CASS), the report stated that tax revenues in 2005 will be over 3.08 trillion yuan, up 19.7% year on year.

During the eleventh five-year plan covering 2006-2010, China's tax revenues are set to grow at an average annual rate of 13.3%, while nominal GDP growth is estimated at 8% per annum.

By the end of 2010, tax revenues are expected to have reached 5.55 trillion yuan.

In October, the State Administration for Taxation announced that China's tax revenues increased by a record 20.4% year on year over the first three quarters of 2005.

Excluding customs tariffs and agricultural taxes, total tax revenues for the first nine months of the year reached 2.32 trillion yuan (US$287 billion). The figures show that tax revenues grew by 20.4% in the first quarter, 22.9% in the second quarter and 17.8% in the third quarter.

Revenues from value added tax, consumption tax and sales tax grew by 18.7% and accounted for 49.4% of the overall revenues.

Corporate and personal income tax revenues grew by 33% and accounted for 37.5% of the total increased revenues, officials stated.

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