Fiscal revenue hits 5.13 trillion yuan in 2007

( Xinhua )
Updated: 2008-03-05 19:58

China's fiscal revenue in 2007 hit 5.13 trillion yuan (US$733 billion), an increase of 1.25 trillion yuan, or 32.4 percent year on year, Ministry of Finance figures show.

Tax income, the major source of revenue, stood at 4.56 trillion yuan, an increase of 1.15 trillion yuan, or 33.7 percent, over the previous year. It accounted for 88.9 percent of the total fiscal revenue.

Non-tax revenue contributed 569.1 billion yuan, a rise of 105.67 billion yuan, or 22.8 percent, year on year, and accounted for 11.1 percent of the total revenue.

Analysts attributed the rapid tax revenue increase to huge real estate investment, the speedy development of industrial and commercial sectors, the hefty economic returns of enterprises and active stock exchange transactions.

Income tax from enterprises, the second biggest revenue source, was 876.95 billion yuan, an increase of 37.9 percent over the previous year. It accounted for 19.2 percent of total tax revenue.

Tax from the refined oil industry, telecom equipment producers, the construction material sector and breweries saw significant yearly increases of 173.1 percent, 99.7 percent, 60.3 percent and 52.1 percent, respectively.

Analysts attributed the significant growth to the greatly improved economy efficiency of industrial enterprises.

Profit of large scale Chinese enterprises increased 36.7 percent in the first 11 months of 2007. The insurance sector, for instance, saw its profits increase by 353 percent.

Value-added tax (VAT) revenue hit 1.55 trillion yuan, a rise of 21 percent over the previous year. Industrial sectors, including refined oil, telecom equipment, nonferrous metal and construction materials, saw especially rapid growth.

Consumption tax, one of the major revenue categories, reached 220.69 billion yuan last year, an increase of 17 percent over 2006. It accounted for 4.8 percent of total revenue.

Since 1994, China has levied a consumption tax on specific goods.  Included were cigarettes, alcohol, motorbikes, cosmetics, automobiles, fireworks and high-grade watches.

Sales tax, which relates to sectors including transport, construction, finance and insurance, telecom, culture and amusement, public service and real estate sales reached 658.2 billion yuan, a rise of 28.3 percent year on year.

According to experts, the rapid rise in the finance and insurance sectors, construction and real estate contributed most to the revenue growth.

Income from the insurance and financial sector increased 53 percent in 2007, real estate sales increased 32.3 percent, while fixed assets investment in urban areas saw a yearly increase of 25.8 percent, according to the figures.

Individual income tax increased greatly amid growing personal income in 2007. It stood at 318.6 billion yuan, a rise of 29.8 percent year on year.

Custom duties and import tariffs reached 758.5 billion yuan, an increase of 24.25 percent. They accounted for 16.6 percent of the total fiscal revenue.