The Chinese central government is touting the scale of its cuts to taxes and administrative fees in 2019.
Data released by the Ministry of Finance (MOF) on 10 February indicates that China’s 2019 national normal public budget revenues were 19.0382 trillion yuan, for YoY growth of 3.8%.
- 8.9305 trillion yuan in central normal public budget revenues, for YoY growth of 4.5%,
- 10.1077 trillion yuan in local standard public budget revenues, for YoY growth of 3.2%.
National standard pubic budget expenditures were 23.8874 trillion yuan, for YoY growth of 8.1%.
A MOF spokesperson also highlighted full year tax and administrative fee reductions in 2019 of over 2.3 trillion yuan, equal to more than 2% of China’s national GDP.
“The focus of reductions in taxes and administrative fees is supporting the development of private enterprises and micro-and-small enterprises, and has vigorously supported the real economy, and in particular the stable operation of the manufacturing sector,” said MOF.
China’s full year tax revenues for 2019 saw growth of 1%, for a deceleration of 7.3 percentage points compared to the previous year.
Domestic value-added taxes grew 1.3%, for a growth decline of 7.8 percentage points, while value-added taxes on imported goods and consumption taxes fell 6.3%.
Personal income taxes fell 25.1%, while enterprise income taxes grew 5.6%.