(Yicai) April 27 -- China’s income tax haul climbed nearly 11 percent in the first quarter from a year earlier, making it the country’s third-biggest source of tax revenue following a seven-year hiatus.

Income tax revenue stood at CNY501.8 billion (USD73.5 billion) in the three months ended March 31, surpassing consumption tax revenue, which fell to CNY499 billion, according to finance ministry data released on April 24. Value-added tax and corporation tax remained the two largest generators of tax revenue.

The bigger in income tax take was largely driven by higher wages and salaries, as well as increased income from equity transfers and dividends, Yang Zhiyong, president of the Chinese Academy of Fiscal Sciences, told Yicai.

In China, income tax is levied on wages and salaries -- which account for more than 60 percent of the revenue raised from the tax -- as well as labor remuneration. It also covers business income and earnings from interest, dividends, bonuses, and property transfers.

In the quarter, disposable income was CNY12,782 (USD1,873) per capita, up 4.9 percent in nominal terms and 4 percent in real terms after filtering out price factors, according to the National Bureau of Statistics. The per capita wage stood at CNY7,319 (USD1,072), up 4.9 percent in nominal terms.

CNY5,000 (USD73) can be earned each month without paying income tax, but with various deductions, individuals with CNY10,000 (USD1,466) a month are largely exempt from paying income tax. Official figures show that more than 70 percent of waged or salaried workers do not need to pay income tax. Over 60 percent of the rest pay the lowest tax rate: 3 percent.

Individuals earning more than CNY1 million (USD146,563) a year account for only about 1 percent of all income tax filers, but contribute to more than half of its haul, according to the State Taxation Administration. Meanwhile, individuals whose declared income ranks in the top 10 percent nationwide contribute over 90 percent.

Since income tax is also levied on earnings from interest, dividends, bonuses, and property transfers, the amount raised tends to move with capital market activity.

This year’s active stock trading and higher turnover supported faster growth in income tax revenue from dividends and property sales. Finance ministry data showed that revenue from stamp duty on securities transactions surged 78 percent in the first quarter from a year ago.

Editor: Futura Costaglione