(Yicai Global) Sept. 18 -- China's revenue from taxation slid between January and August, according to the latest official figures, mainly because of Beijing's large-scale tax cuts.
Tax revenue fell 0.1 percent to CNY11.7 trillion (USD1.7 trillion) in the eight months from a year earlier, the Ministry of Finance said yesterday. Despite that, government expenditure rose 8.8 percent to CNY15.3 trillion over the same period.
The government's tax takings are a barometer of the economy, which is stable as the cuts have eased the burden on companies and stimulated market vitality, the ministry added.
It received enough cash to meet the capital needs of key areas, the ministry said, adding that outgoings on transport and people's livelihoods were up 16.1 percent at CNY84.4 billion (USD11.9 billion) and 9.2 percent at CNY2.2 trillion.
Revenue from value-added tax during the first eight months climbed 4.7 percent to CNY4.5 trillion. The growth rate was much lower than the 13.6 percent a year earlier thanks to the country's VAT reform, which slashed rates for manufacturers, the ministry said.
Personal income tax fell the fastest -- 30.1 percent -- to CNY721.2 billion after China raised the minimum income threshold, adjusted tax brackets and added six new special reasons for deductions.
Corporate tax fell 3.6 percent -- 9.3 points lower than a year earlier -- to CNY3.1 trillion after the government adjusted pre-tax deductions for research expenses and added inclusive income tax deductions and exemption policies for low profit earners. Overall corporate profits were also lower during the period.
National general public budget income was CNY1.4 billion, up 3.2 percent, or 6.2 points lower than a year earlier. Non-tax revenue rose 27.3 percent to CNY2 trillion and income from state capital operations grew nearly six-fold, gaining CNY288 billion, according to the data.