Charts of the Day: Individual Income Tax Revenue Hits Three-Year Low

Monthly revenue from individual income taxes hit a three-year low in November, reaching 7 billion yuan ($1.02 billion) after several months of decline and October’s new package of tax cuts, according to data from the Ministry of Finance.

The tax reform, which aims to bolster slowing economic growth by stimulating consumer spending, raised the monthly tax-free income threshold from 3,500 yuan to 5,000 yuan. This led to an estimated 60 million people no longer paying individual income taxes, according to data from the State Administration of Taxation.

The year-on-year growth rate in individual income tax revenue also plummeted in November, down from September’s 20.8% to -17.34%. The last time the year-on-year growth rate was negative was February, when it was -17.22%. This may have been due to the weeklong Lunar New Year holiday, which fell entirely within February this year, but straddled January and February in 2017.

Total tax revenue from individual income taxes from the start of the year through November reached 1.3 trillion yuan, up 17.04% from the same period in 2017.

Contact reporter Gao Baiyu (baiyugao@caixin.com)