Budget revenues in China by the end of the last seven months rose by 8.5% compared to the same period last year and amounted to 8.73 trillion yuan, 1.42 trillion dollars. These data were published by the Ministry of Finance of the PRC. According to the report, most of all increased revenues of local budgets – by 10.8%, as well as revenue in the central budget – 6%.
It is worth noting that the proceeds from the collection of enterprise income tax real estate continued to April’s negative trend growth, reaching 53.1 billion yuan with a decrease of 2.5%, the amount of charges sales tax in real estate amounted to 44.3 billion yuan, a negative change April’s growth, but grew by only 0.1%. These figures have become a testimony of the decline in business activity in the country’s property market.
The Ministry of Finance of China emphasized that the relatively slow growth in revenues of the central budget is associated with the expansion of the experimental reform on replacing Business Tax on VAT. At the same time, these measures combined with increased control improve tax collection.
Recall, in the II quarter of China’s GDP grew at an annualized rate of 7.5%, which is 0.1 percentage points higher than in I quarter. In the first half, China’s economy grew by 7.4% compared to January-June 2013 and was 26.9 trillion yuan ($ 4.4 trillion). The Chinese Government plans to average annual growth rate of the country in 2014 at 7.5%. In 2013, China’s GDP grew by 7.7%.