Jan 30, 2019 04:33 PM

Wang Tao: The Size and Effect of China's Tax Cuts

Photo: IC
Photo: IC

Most of China's tax revenue comes from the corporate sector. China's broad fiscal picture expands far beyond the official general government budget to the government funds budget (mainly land-related revenue and spending), two other budgets (the state capital operation budget and local social insurance budget), and quasi government spending.

China’s general government budget revenue stood at more than 17.3 trillion yuan (or 21% of GDP) in 2017, 84% of which came from tax revenue. China's tax revenue is predominantly collected from the corporate sector. The two biggest sources of tax revenue are value added tax (VAT, 33%) and corporate income tax (CIT, 19%). In addition, 9% of tax revenue came from VAT and consumption tax for imported goods. Personal income tax (PIT) only accounts for 7% of total general fiscal revenue.

Register to read this article for free.
Share this article
Open WeChat and scan the QR code
Copyright © 2017 Caixin Global Limited. All Rights Reserved.