China's Public Revenue Drops 17.1% in January 2009

---

Researched by Industrial Info Resources (Sugar Land, Texas)--In January 2009, China's public revenue reached $89.51 billion, a drop of $18.47 billion or 17.1% year over year. Revenue of the central government reached $43.28 billion, a drop of 28.4% year over year, and the revenue of local government reached $46.23 billion, a drop of 2.7% year over year, according to the monthly report published by the Ministry of Finance of China on February 16, 2009.

Tax revenues reached $82.32 billion, a drop of 16.7% year over year. This included the following catagories:

• Domestic value-added tax down 2.8%;
• Domestic consumption tax up 13.2%;
• Business tax down 2.7%;
• Enterprise income tax down 24.8%;
• Individual income tax down 1.9%;
• Import value-added tax and consumption tax down 19.1%;
• Duty down 19.3%;
• Securities exchange stamp tax down 95.7%;
• Vehicle procurement tax down 21.2%.

In January 2009, the foreign-trade tax refund reached $9.26 billion, an increase of $1.85 billion or 25% compared with the same period of the previous year.

The rapid decline of public revenue in January 2009 is mainly attributable to: 1) reduced financial sources resulting from the current economic slowdown, and 2) the implementation of tax de-rating policy, including the lowering of stamp-tax rate as well as the increase of the export-tax refunding rate, the de-rating of individual income tax, a reform in value-added tax, and the reduction of vehicle procurement tax to 5% for smaller vehicles. In addition, the long holiday of the Chinese New Year resulted in the loss of five working days in January, which contributed a large portion to the drop of public revenue in the month, said the Ministry of Finance in its announcement.

Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.