China's fiscal revenue surged 34.3 percent from a year earlier to 754.6 billion yuan (US$117.9 billion) in August, the Ministry of Finance said yesterday.

The rise was better than the 26.7 percent in July and 27.6 percent in June because the country benefited from the 52.9 billion yuan in the special oil gain levy for April to June.

"If we exclude the effect of the special oil gain levy collected last month, the growth would be around 25 percent, showing a consistent trend of easing," the ministry said. "With the personal income tax threshold being higher from this month, we are likely to see revenue moderate further.''

China raised the personal income tax threshold to 3,500 yuan from 2,000 yuan from September 1, a move which exempted millions from having to pay tax but would trim government revenue.

In August, personal income tax receipts, which took up 6 percent of China's fiscal revenue last year, rose 32.6 percent annually to 48.3 billion yuan.

China's cooling economy may also cut the government's fiscal revenue. The State Information Center, a research unit under the National Development and Reform Commission, forecast the economy to grow 9.2 percent annually in the third quarter, down from 9.5 percent in the second quarter and 9.7 percent in the first three months.

Corporate income tax added 17.9 percent annually to 49.5 billion yuan in August, from July's 34.4 percent rise. Business tax receipts jumped 23.4 percent to 93.9 billion yuan while collections from value-added tax rose 18.1 percent to 195.9 billion yuan, the ministry said.

In the first eight months, China's fiscal revenue gained 30.9 percent annually to 7.43 trillion yuan.

August's fiscal spending increased 25.9 percent from a year earlier to 807.6 billion yuan.

Source:shanghaidaily