(Yicai) Feb. 27 -- Shanghai has beaten Guangdong as China's biggest collector of personal income tax due to policy changes and residents' rising wealth.

Shanghai earned CNY95.3 billion (USD13.2 billion) in personal income tax revenue last year, up by 6 percent from a year ago, but Guangdong province was hard on the heels of the eastern megalopolis with CNY94.6 billion, a 4 percent decline, according to Yicai's compilation of annual budget reports released by various provinces. Most regions logged shrinking sums due to policy adjustments so Shanghai's boost was exceptional.

Eastern China is showing its economic might as seven out of the domestic top 10 collectors of personal income tax were located close to the coast. Besides southern China's manufacturing powerhouse Guangdong, the two others in the top 10 are western China's Sichuan province, ranking eighth, and central Hubei province, No. 9.

Beijing was No. 3 on the list which indicates salary development with revenue of CNY77.3 billion. Zhejiang and Jiangsu provinces recorded sums between CNY50 billion and CNY60 billion. Fujian logged CNY34.4 billion and Shandong CNY26 billion. Sichuan, Hubei, and Tianjin all reported figures between CNY10 billion and CNY20 billion. The numbers exclude the standard 60 percent share of personal income tax that goes to the central government.

Many regions' decline in personal income tax revenue last year may be related to a decrease in residents' incomes or it could be linked to incidental factors causing the high base of 2022, Luo Zhiheng, chief economist at Yuekai Securities, told Yicai. But regions are expected to resume growth this year as temporary factors pass, Luo added.

The top 10 regions, except for Fujian province, have released predictions for this year, expecting to report growing revenues. With Shanghai expected a 6 percent increase, while Guangdong predicted a 5.5 percent gain, the eastern finance hub will retain its top position in 2024.

Editors: Tang Shihua, Emmi Laine