China Trade Information

China’s tax revenue was RMB 532.325 billion in July, a rise of 13.8% compared with the same period last year, but growth rate was down 19.3 percentage points lower than the same period last year, according to statistics released by the Ministry of Finance (MOF).

The slowdown in growth was mainly due to efforts to cool down the economy and curb inflation, said MOF.

Statistics showed that domestic value-added, consumption and business taxes jumped 21.5%, 15.1% and 17.1% from a year earlier to RMB 148.532 billion, RMB 20.169 billion and RMB 77.531 billion respectively, contributing nearly half of the overall tax revenue.

The combined tax on imports went up 47% to RMB 76.356 billion in July, followed by individual income tax, which amounted to RMB 28.087 billion, an increase of 8.2% from a year ago.

However, corporate income tax and the cumulative securities stamp tax in July recorded a decline of 4.2% and 71.8% to RMB 149.635 billion and RMB 4.973 billion respectively.

The government had cut the stamp tax from 0.3‰ to 0.1‰ from April 2008 in a bid to enhance investors’ confidence and encourage market participation in the declining securities market.

Tags: MOF, tax

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