China's Fiscal Revenue Hits USD1.7 Trillion Record-High

China's Fiscal Revenue Hits USD1.7 Trillion Record-High

Chen Yikan

Date: Fri, 06/15/2018 - 14:39 / source:Yicai
China's Fiscal Revenue Hits USD1.7 Trillion Record-High
China's Fiscal Revenue Hits USD1.7 Trillion Record-High

(Yicai Global) June 15 -- China's fiscal revenue hit a record high of CNY11.2 trillion (USD1.7 trillion) in January to May this year driven by a robust rise in government funds income.

Budget revenue of government funds across the country surged almost 40 percent to CNY2.6 trillion, while public budget income rose 12 percent to CNY8.7 trillion, China’s finance ministry said in a statement. 

The country's general public budget revenue is divided into tax and non-tax gains. The former rate, which can better reflect economic development, maintained a double-digit growth rate of 15.8 percent over the same period of last year, far outstripping the overall economic growth rate. Non-tax revenue in the first five months decreased 9.5 percent following a fee reduction policy brought in to support the real economy.

For May alone, growth of the general public budget revenue has declined, falling to a single-digit growth rate for the first time at 9.7 percent.

Tax gains make up the bulk of general public budget income. Among them, domestic value-added tax income was the largest duty for during the first five months at CNY2.8 trillion, increasing 19 percent annually and accounting for 36 percent of total tax revenue. The higher growth rate was mainly due to a rebound in the industrial production growth as well as rising prices and sustained improvements in the service industry, the ministry said.

Income derived from personal income tax and domestic consumption tax grew by more than one-fifth during the period. The growth of the former item was driven by an increase in the spending power among urban residents and a rise in the number of taxpayers while the latter income growth was mainly driven by a jump in cigarette and refined oil product sales.

Editor: William Clegg

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Keywords: Ministry of Finance, Fiscal Revenue