Opinion: China’s Lagging Tax Receipts a Worry, but 2023 Looks More Promising

As the end of the year looms, the market has become concerned about whether China’s annual fiscal budget goals can be met. If there is a large shortfall in revenue, it will bring into doubt expenditure, which will trigger a series of worrisome issues.

Tax revenue is a top priority when it comes to meeting budget goals. Tax receipts totaled 14.26 trillion yuan ($2 trillion) from January to October, lagging their full-year target by 3.75 trillion yuan. This means that the target cannot be achieved unless tax income for the last two months jumps 131% year-on-year.