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News >Bizchina

China's tax revenue surges 29.6% in H1

2011-07-19 17:09

BEIJING -- China's tax revenue rose 29.6 percent year-on-year to exceed 5 trillion yuan ($769.66 billion) in the first half of the year, the Ministry of Finance (MOF) announced on Tuesday.

The rate of increase was lower compared with the 32.4-percent rise in tax revenues in the first quarter of the year.

The ministry attributed the tax revenue increase in the first six months to improvements in the profitability of the country's enterprises, which have been buoyed by rapid economic growth.

Inflation has also played a role in the surging tax revenues, as most of China's taxes are calculated using current prices, the ministry said in a statement on its website.

The country's economy increased by 9.6 percent year-on-year in the first half of the year. Inflation hit a three-year high of 6.4 percent in June, despite the government's efforts to ease price rises.

From January to June, revenues from value-added taxes, which account for 24.8 percent of the country's total tax revenues, grew by 19.7 percent from a year earlier to reach 1.24 trillion yuan, the ministry said.

Revenues from personal income taxes and tariffs climbed 35.4 percent and 32.1 percent year-on-year, respectively, in the first six months, it said.

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