Caixin
Nov 14, 2018 06:03 PM
DAILY CHART

Charts of the Day: Income Tax Revenue Slips After Reform

China’s latest tax cut is already having an effect on government coffers. Monthly tax revenue from individual income taxes hit a low for 2018 in October, down from 103 billion yuan ($14.8 billion) in September to 93.8 billion yuan last month, according to data from the Ministry of Finance.

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China’s new individual income tax rates took effect in October. The new package has cut the tax burden on low-income earners by expanding lower tax brackets and raising the monthly tax-free threshold from 3,500 yuan to 5,000 yuan.

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The year-on-year growth rate in individual income tax revenue slowed to 7% in October, down from 20.8% in September, according to the Ministry of Finance.

Through October, total tax revenue from individual income taxes reached 1.23 trillion yuan, up 19.9% from the same period in 2017, according to data from the Ministry of Finance.

Contact reporter Charlotte Yang (yutingyang@caixin.com)

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