2012-07-25

Chinese tax growth rates plunge

Tax revenues are up in China (except for property sector taxes), but the growth rate has plunged from almost 30 percent to less than 10 percent due to tax cuts and a slowing economy.

Slowing Economy Sharply Weakens China's Tax Revenue Growth
Tax revenues rose only 9.8 percent year-on-year to reach 5.49 trillion yuan (866.76 billion U.S. dollars) in the world's second-largest economy during the first six months, according to the MOF.

Elsewhere: China to Expand Value-Added Tax Reforms
Under the reform program, which was implemented in Shanghai at the start of this year, certain service sectors would move from paying a business tax that is levied on total revenue, to a value-added tax, lowering their overall tax burden.

The reform is seen by analysts as part of a patchwork of measures to boost growth in China's slowing economy, while advancing long-term reform goals such as developing the services sector.

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