Tax collections down in first half of 2012

The government collected less personal income taxes and taxes related to real estate decreased in the first six months of 2012 than in the same period a year ago, the Ministry of Finance said on Tuesday, according to the Beijing-based Beijing Times.

The amount of personal income taxes collected decreased by 8 percent year-on-year in the first six months of 2012, hitting 372.2 billion yuan ($59 billion). The rate of change for the first half was down 43.3 percentage points year-on-year.

Meanwhile, the country continues to rein in its housing market and apply curbs to property prices. As a result, less revenue was collected from taxes imposed on the property industry, which used to contribute the majority of local governments’ revenues.

Also in the first half of the year, revenues from contract taxes decreased by 9.9 percent and from business taxes on the property sector by 8.5 percent.