(Yicai Global) Feb. 11 -- China's fiscal revenue expansion slowed in 2019 with a sharp decline in tax revenue growth amid the country's massive tax and fee cuts to support economic growth.
Fiscal revenue climbed 3.8 percent year on year to CNY 19.04 trillion (about USD 2.72 trillion) last year, data from the Ministry of Finance showed yesterday. The pace of growth fell from the rise of 6.2 percent registered in 2018.
The finance ministry attributed the slowdown to the country's policies to cut taxes and fees, which would top CNY 2.3 trillion in 2019 and benefit the manufacturing industry and small businesses in particular.
The country's tax revenue totaled CNY 15.8 trillion last year, up 1 percent from 2018. That was compared with a rise of 8.3 percent recorded in 2018.
Revenue from value-added tax, the largest fiscal revenue source in the country, rose 1.3 percent year on year in 2019, sharply down from an increase of 9.1 percent in 2018.
A breakdown showed the central government collected CNY 8.93 trillion in fiscal revenue, up 4.5 percent year on year, while local governments saw fiscal revenue expand 3.2 percent to CNY 10.11 trillion last year.
The ministry said the country will continue to consolidate and expand the effect of its tax-and-fee reduction policies in 2020, especially to help mitigate the impact of the novel coronavirus outbreak on its economy.
Yesterday's data also showed the country's fiscal spending in 2019 rose 8.1 percent to CNY 23.89 trillion, as the country increased inputs in poverty alleviation, technological innovation, environmental protection as well as the agricultural sector.