China’s Ministry of Finance today released a report analysing the structural growth of tax revenue in 2012. The report revealed that the total national tax revenue in 2012 was 10.060088 trillion yuan, a year-on-year growth of 12.1 percent. The 2012 tax revenue growth was the lowest rate for nearly three years. Growth was 10.5 and 10.9 percentage points lower than in 2011 and 2010, respectively.
An analysis by the Ministry of Finance suggested that the significant drop in 2012 tax revenue growth was due to a combination of factors including a slowdown in economic growth, the deceleration of enterprise profits, weak import growth, and the implementation of structural tax cuts.
Source: People’s Daily, January 24, 2013