China’s tax revenue declines in first 8 months thanks to tax cuts

China’s tax revenue declined in the first eight months of the year as the country stepped up tax cuts to boost market vitality.

The country’s tax revenue totaled some 11.32 trillion yuan (about 1.63 trillion U.S. dollars) in the January-August period, down 12.6 percent year on year, according to data from the Ministry of Finance.

China earned about 2.83 trillion yuan in value added tax (VAT) during the period, down 37.6 percent from the level a year earlier.

The country launched a large-scale VAT credit refund campaign this year to ease the financial burden on taxpayers. The country’s cumulative tax refunds, tax and fee reductions and tax and fee deferrals this year exceeded 3.3 trillion yuan as of August 31, according to the State Tax Administration.

Excluding the impact of VAT credit refunds, China’s tax revenue was up 1.1% year-on-year.

The purchase tax on automobiles fell 30.5% year-on-year in the first eight months, as the government decided in late May to halve the purchase tax on cars for certain passenger vehicles.

(Xinhua)