China's tax receipts soar 25%


THE Chinese government's tax receipts from individuals surged to 605.4 billion (US$96.1 billion) last year due to higher collections from transfer of assets, high income earners and rising income, the Ministry of Finance said yesterday.

Tax collected from individuals in China surged 25.2 percent annually, the ministry said in a report. The growth rate was nearly three times that of China's economic expansion of 9.2 percent in 2011.

The ministry said tax collected through equity transfer and auctions in the booming capital and art markets contributed to the big increase in the receipts. It also attributed an average 14.1 percent growth in disposable income and more stringent tax collection from high income earners as another factor for the jump.

China's total tax revenue rose an annual 22.6 percent to 8.97 trillion yuan in 2011, the ministry said.

The report also disclosed that value-added tax, which companies including manufacturers, importers and merchandisers have to pay, climbed 15 percent from a year earlier to 2.43 trillion yuan last year.

But individual income tax declined 11.1 percent annually in the fourth quarter after China reduced tax for low- and middle- income earners.

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