China Reports Increasing Fiscal Revenue
January 23, 2012 Taxation in China
BEIJING – Throughout 2011 China saw significant growth in national tax collections, and the government’s total revenue for the year jump to above RMB 10 trillion.
On January 20th the Ministry of Finance of China released a statement announcing that the government’s revenue reached RMB 10.17 trillion for the 2011 year, having grown by 24.8 percent compared to the results seen in 2010.
The recorded fiscal revenues were comprised of RMB 5.13 trillion collected by the central government and an additional RMB 5.24 trillion of collections by local governments around the country. According to the Ministry of Finance, local governments’ revenues were up by29.1 percent in 2011 and the central government’s revenue rose by 20.8 percent.
Tax collections in China rose by 22.6 percent in 2011 and contributed RMB 8.97 trillion to the revenue total. Non-tax revenues amounted to RMB 1.4 trillion of overall collection, and were recorded to be approximately 41.7 percent higher than in the previous year.
Collection of corporate income taxes accounted for RMB 1.68 trillion and was recorded to have increased by 30.5 percent throughout 2011. Revenues from personal income taxes rose to RMB 605.4 billion and were up by 25.2 percent compared to the previous year.
The Ministry of Finance of China attributed the increasing revenues to the country’s high economic development levels in 2011, saying that GDP growth was 9.2 percent for the year.
Photo by Patrick Yan