China’s tax revenue fell 4.8% year-on-year in the first four months of this year, new data shows.
The country’s tax revenue amounted to about 7.43 trillion yuan (about $1.1 trillion) during the period, according to the Ministry of Finance.
Excluding the impact of refunds of value added tax (VAT) credits, tax receipts nevertheless increased by 5% compared to the previous year.
The central government and local governments collected 3.46 trillion yuan and 3.97 trillion yuan in tax revenue, down 5.7 percent and 3.9 percent, respectively, according to Xinhua News Agency.
Tax revenue amounted to 6.23 trillion yuan in the January-April period, down 7.6 percent year on year.
Fiscal spending rose 5.9 percent year on year to 8.09 trillion yuan in the first four months.
China began issuing large-scale VAT credit refunds in April. The total value of these refunds reached about 800 billion yuan last month, according to the media portal.
In 2022, tax refunds and reductions are expected to amount to about 2.5 trillion yuan, of which VAT credit refunds will amount to some 1.5 trillion yuan and all will go directly to businesses, according to the business report. of the country’s government.
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