Product
Supplier
Encyclopedia
Inquiry
Home > News > Valuable News > In the first August, the national tax revenue fell by 0.1% year-on-year

In the first August, the national tax revenue fell by 0.1% year-on-year

ECHEMI 2019-10-14

coal-pricing

According to data released by the Ministry of Finance yesterday, the cumulative national public budget revenue from January to August was 137.61 billion yuan, an increase of 3.2% over the same period last year. Although it is 0.1 percentage point higher than the previous value, it remains at a low level of about 3%. Expert analysis believes that this is mainly affected by large-scale tax cuts and fee cuts and the slowdown in economic growth.

From January to August, the national tax revenue was 117.13 billion yuan, down 0.1% from the same period last year, while the non-tax revenue was 1992.7 billion yuan, up 27.3% from the same period last year.

This year, the dividend of China's tax reduction and fee reduction policy of 200 billion yuan is speeding up. New policies such as the sharp reduction of VAT tax rate have slowed down the growth rate of VAT income, increased the starting point of individual taxes, expanded the gradation and introduced six special additional deductions, resulting in a continuous decline in tax revenue. In view of the policy of expanding the scope of tax reduction for small and micro enterprises, the growth of enterprise income tax has also been slowed down. Li Xuhong, director of the Institute of Fiscal and Tax Policy and Applied Research of Beijing National Accounting Institute, said that the national tax revenue decreased by only 0.1% compared with the same period last year, reflecting a relatively stable trend in the overall tax revenue. The main tax categories, VAT, enterprise income tax and most tax categories showed a steady or small growth, while the personal income tax was lower than the same period last year. It dropped by 30.1%. The increase was offset by a rise and a fall, and overall tax revenue was stable. Li Chao, chief macro-researcher of Huatai Securities Research Institute, believes that there are two reasons for the sustained low growth rate of fiscal revenue: one is the tax reduction effect, the growth rate of VAT with a larger tax reduction range this year is 4.7% from January to August, which is 0.7 percentage points lower than the previous value; the other is the impact of downward economic pressure and the correlation with the economic cycle. Strong corporate income tax increased by 3.6% from January to August, down 0.4 percentage points from the previous value. Neither logic will change fundamentally for the rest of the year, and fiscal revenue growth is expected to remain low.

The growth rate of fiscal expenditure in the first eight months of also declined. The data show that from January to August, the total expenditure of the national general public budget was 15306.9 billion yuan, an increase of 8.8% over the previous year, a decrease of 1.1 percentage points compared with the previous value. In terms of expenditure structure, expenditure on science and technology increased by 15.2% and expenditure on energy conservation and environmental protection increased by 13% year on year, both of which maintained a relatively high growth rate.

What is worth noting is that from January to August, the budgetary revenue of the national government funds was 4598.7 billion yuan, an increase of 6.4% over the same period of last year, of which the revenue of land transfer increased by 4.2% over the same period of last year. Income growth of land transfer has been rebounding for two consecutive months. Li Chao believes that the growth rate of land transfer income may reflect that the local government may accelerate land transfer under the pressure of fiscal revenue and expenditure. On the other hand, it may also be driven by leading real estate enterprises to centralize the layout of first-and second-tier cities under the condition of better sales returns.

Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.

Looking for chemical products? Let suppliers reach out to you!

Comment
Comment

Trade Alert

Delivering the latest product trends and industry news straight to your inbox.
(We'll never share your email address with a third-party.)

Scan the QR Code to Share

Feedback & Suggestions
Send Message

Thank you for your feedback. If you require further assistance, please contact us by email at info@echemi.com or call us at +86-532-55729510.