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.

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.

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)