China's Fiscal Revenue Growth Slumps to 10-Year Low Jan.-May
Chen Yikan | Zhu Yanran
DATE:  Jun 15 2019
/ SOURCE:  yicai
China's Fiscal Revenue Growth Slumps to 10-Year Low Jan.-May China's Fiscal Revenue Growth Slumps to 10-Year Low Jan.-May

(Yicai Global) June 14 -- China has logged the slowest growth of its general government budget revenue in the first five months of this year since 2010 due to easing tax burdens on companies and individuals.

China's total revenue rose 3.8 percent to CNY8.99 trillion (USD1.3 trillion) in the period from January to May, data released by the Ministry of Finance today shows. The declining pace of growth was caused by duty cuts, as tax revenue rose merely 2.2 percent to CNY7.85 trillion.

Personal income tax revenue fell nearly 31 percent to CNY477.8 billion as the nation reduced such levies for low-income earners and implemented new duty deduction categories at the start of this year.

Domestic value-added tax revenue climbed 6.8 percent to CNY3.03 trillion. The growth slowed 12.2 percentage points from last year. Funds from VAT and consumption tax on on imported goods declined 1.6 percent to CNY712.3 billion. Income from import duties fell 6.2 percent to CNY117.5 billion.

Despite the trimmed revenues, the central government spent more. The general public budget expenditure rose 12.5 percent over the five months to CNY9.3 trillion. The growth was 4.4 percentage point faster than that of the previous year, which signals a proactive fiscal policy. 

Editor: Xu Wei, Emmi Laine

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Keywords:   Fiscal Revenue,Tax