By South China Morning Post | Created at 2024-11-19 04:44:41 | Updated at 2024-11-22 02:40:21
2 days ago
China’s tax revenue posted year-on-year growth for the first time this year in October on the back of Beijing’s stimulus measures, while fiscal expenditure also accelerated as various local governments increased spending amid efforts to achieve the national annual economic growth rate target.
Tax revenue in October rose by 1.8 per cent year on year to 1.907 trillion yuan (U$263 billion), according to data calculated by Chinese financial data provider Wind based on official releases from China’s Ministry of Finance.
Combined with a 40 per cent increase of non-tax revenue - comprising government funds, special bonds and punitive fines - fiscal revenue rose by 5.5 per cent year on year last month, consolidating a turnaround in September.
Consumption played an important role in boosting revenues, with consumption tax jumping by 10.2 per cent year on year in October, representing a 26.5 percentage point increase compared to September, according to Guosheng Securities.
“This further confirms the bright performance of retail sales data in October, which was mainly due to the effect of the trade-in of consumer goods and the early start of the Double 11 event,” Kaiyuan Securities said on Monday, referring to the shopping festival, which is similar to the Black Friday and Cyber Monday sales in the United States.
