SAT Says Chinese Tax Revenue Up 10.9% On Last Year

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

16 July 2002

Figures released by the Chinese State Administration of Taxation (SAT) on Saturday revealed that tax revenue for the first half of this year is up 10.9% on the same period in 2001, coming in at around 841.3 billion yuan ($101.7 billion).

However, speaking to the Xinhua news agency, an SAT official announced that the increase rate was lower than last year, partly as a result of the implementation of policies designed to reduce taxation - namely a cut in the sales tax rate for the finance and insurance industries, and the reduction of stamp duty on securities.

The tax collection figures showed that central level tax collection was up 9.8% at 507.3 billion yuan ($61.3 billion), and local tax revenue showed an increase of 12.7% on the first six months of last year, coming in at around 334 billion yuan ($40.4 billion).

The statistics provided by the state on Saturday further revealed that personal income tax collection in China had increased 27.7%, and tax collected from foreign funded enterprises by 31.4%.

According to reports in the local media, a recent craze for car-buying has also contributed to the government's coffers, with tax revenue from car purchases contributing 16.3 billion yuan ($1.97 billion) to the total amount collected.

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