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          China's tax revenues hits $1.4t in 2011

          Updated: 2012-02-14 20:07

          (Xinhua)

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          BEIJING - China's tax revenues surged 22.6 percent year-on-year to 8.97 trillion yuan ($1.42 trillion) in 2011, the Ministry of Finance said Tuesday.

          The growth rate stayed flat with that of last year, the ministry said in a statement on its website.

          The steady growth was a synthesized reflection of the country's relatively fast economic growth, high consumer prices, and good corporate performances over the past year, the ministry said.

          Production-related taxes rose the most last year. Receipts from value-added tax and turnover tax grew 15 percent to 2.43 trillion yuan and 22.6 percent to 1.37 trillion yuan, respectively, in 2011, remaining unchanged from one year earlier.

          Meanwhile, revenues from corporate income tax surged 30.5 percent year-on-year to 1.68 trillion yuan, up from 11.3 percent last year, accounting for 18.7 percent of the country's total tax revenues.

          But tax revenue growth slowed on a quarterly basis last year. Tax revenues grew 6.8 percent in the fourth quarter in 2011, down from 22.6 percent in the third quarter, 27.2 percent in the second quarter, and 32.4 percent in the first quarter, the ministry said.

          The ministry said the quarterly decrease was caused by a slowing economy, tax-reduction policies, cooling auto and property sectors as well as losses in the oil refining industry, the ministry said.

          The economy expanded by 9.2 percent year-on-year in 2011, with its GDP growth rate dropping to a 10-quarter low of 8.9 percent in the fourth quarter, according to the National Bureau of Statistics.

           

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