China's tax revenue growth hits three-year low

   Apr 25, 10:34 am

Beijing, Apr 25 (Xinhua-ANI): Growth of China's tax revenues logged the slowest pace in three years in the first quarter of 2012 as a result of the country's cooling economy, official data showed Tuesday.

Tax revenues rose 10.3 percent year-on-year to 2.5858 trillion yuan (410.4 billion U.S. dollars) in the first quarter, the Ministry of Finance said in a statement posted on its website.

The growth rate marked the slowest pace in three years, pulling back 22.1 percentage points from the same period last year, the ministry said.

Revenues from major tax items saw slower year-on-year gains. Receipts from value-added tax, consumption tax and turnover tax rose 5.4 percent, 15.1 percent and 7.6 percent, respectively, down 17.8 percentage points, 6.4 percentage points and 18.7 percentage points from a year earlier, the statement said.

Revenues from corporate income tax increased 20.5 percent during the January-March period, while those from personal income tax dropped 6.2 percent year-on-year, slumping 43.2 percentage points on the same period last year.

The easing pace came as China's industrial value-added output and profits, key measures of industrial performances, both saw slower growth in the first two months as the country's economy cooled.

China's economy expanded 8.1 percent year-on-year in the first quarter, marking the fifth consecutive quarter of slowing growth, according to the National Bureau of Statistics.

During the January-February period, the country's industrial value-added output shed 2.7 percentage points to grow 11.4 percent while industrial profits decreased 5.2 percent year-on-year, down 39.5 percentage points on last year.

Meanwhile, property-related tax income retreated significantly in the first three months. Revenues from deed tax and sales tax declined 13.6 percent and 17.5 percent, respectively, shedding 41.1 percentage points and 45.8 percentage points from the same period of last year.

The shrinking tax in the sector is largely the outcome of sagging sales due to the government's persistent control efforts. In the first two months, sales value of commercial housing dropped 20.9 percent year-on-year, according to the statement.

The ministry also attributed the slower growth to the country's cooling inflation and tax-reduction policies.

Growth of the country's Producer Price Index, a major gauge of inflation at wholesale level, pulled back 6.5 percentage points in the first two months, while that of the consumer price index, a main measure of inflation, retreated 1 percentage points, eroding tax revenue that was computed with the current prices.

Also, the government's moves to reduce tax burdens and deepen structural reform, including by raising the threshold of income tax, tariff reductions on certain imported products and favorable tax policies for small and micro-sized enterprises, have combined to drag down the tax revenues, the ministry said. (Xinhua-ANI)

Germanwings co-pilot had practiced rapid descent on previous flight, claim investigators May 7, 9:20 am
London, May 07 (ANI): The co-pilot of the Germanwings aircraft that crashed into the French Alps two months back is believed to have practiced a rapid descent on the same plane on a previous flight, according to a report by French investigators.
Full Story
Netanyahu finally patches up new coalition govt with right-wing party support May 7, 9:20 am
London, May 07 (ANI): Israeli Prime Minister Benjamin Netanyahu has agreed to form a new coalition government just before the deadline of the formation of an administration.
Full Story
'Relationship with India has strategic meaning, global influence': China May 6, 9:23 pm
Beijing, May 6 (ANI): China on Wednesday said that the relationship between Beijing and New Delhi has strategic meaning and global influence, adding that Prime Minister Narendra Modi's upcoming visit to the People's Republic will strengthen the strategic mutual trust between the two countries.
Full Story
Nepal quake death toll crosses 7,500 May 6, 6:42 pm
Kathmandu, May 06 (ANI): The death toll from the April 25 deadly earthquake in Nepal has crossed 7,500 after the country saw a fresh tremor of magnitude 4.0 on Tuesday.
Full Story
Comments

LATEST STORIES
TOP VIDEO STORIES
PHOTO GALLERY