Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

LATEST
NIO Strikes Government Deal with New Headquarters and New Funding Plan
Daimler Slims Down China Venture in Global Cost Saving
U.S. Transport Agency Bans Employees From Using TikTok For Work
Huawei Launches New Foldable Smartphone, Targets Android Market with HMS
Industries Switch Up Production Processes to Use Byproducts to Produce Medical Supplies
China Plans to Mass Produce Driverless Cars by 2025 Later Than Previous Forecast
U.S. Companies Fluctuate on Wall Street as Covid-19 Hits Their 2020 Forecasts
Snack Shop Serves Up First IPO from Wuhan Since Covid-19 Outbreak Took Hold
Chinese AI Firm Laiye Secures $42 Million in Series C Funding Round
Japan’s Finance Minister Expresses Concerns Over China’s Digital Yuan
U.S. Allows China’s iFlyTek to Resume Purchases of American-Made Medical Products During Outbreak
China Accounts For Nearly Half of All Global 5G Smartphone Shipments in 2019: Research
Xiaomi-Backed Smart Home Cleaner Maker Raises $641 Million in Shanghai IPO
Foxconn Allows Henan Workers to Return to Its Zhengzhou Complex
Alibaba-Owned Livestreaming Platform Taobao Live Sees Rapid Growth Amid Outbreak
Lenovo Charges Up Investors by Playing Down Virus Impact
Huawei ‘Disappointed’ After U.S. Court Rejects Its Federal Ban Challenge
Didi Installs In-Car Protective Sheets Between Drivers and Passengers to Control Coronavirus
Puma and Adidas Face Massive Sales Drop Due to Coronavirus
China Raises First-Batch Rare-Earth Mining Quota by 10% for 2020
Government Revenue Growth Dips to More Than Three-Decade Low

By Guo Yingzhe and Cheng Siwei / Feb 11, 2020 01:13 PM / Economy

Photo: VCG

Photo: VCG

China’s fiscal revenue grew at the slowest pace since 1987 last year amid slowing economic growth and big tax and fee cuts, official data showed Monday.

Fiscal revenue grew 3.8% to 19 trillion yuan ($2.7 trillion) in 2019, according to (link in Chinese) the Ministry of Finance, missing the annual target of 5% growth. It was 2.4 percentage points lower than the revenue growth for 2018 and the second consecutive annual slowdown.

The central government collected 4.5% more revenue than the previous year, while local governments collected 3.2% more. This meant they missed the officially set growth targets of 5.1% and 4.9%.

Tax and fee cuts are the major reason for the revenue slowdown, the finance ministry said. Tax revenue for 2019 rose only 1%, 7.3 percentage points lower than the previous year. China cut taxes and fees by over 2.3 trillion yuan last year in order to ease corporate burden and shore up the slowing economy.

As tax cuts hit government revenue, authorities have resorted to other revenue sources to make up the funding shortfall, such as selling state-owned assets including land, and creaming off more profits from state-owned enterprises. Official data showed that nontax revenue in 2019 grew 20.2%, while it fell 4.7% the previous year.

Contact reporter Guo Yingzhe (yingzheguo@caixin.com)

Related: Local Governments Miss 2019 Revenue Targets

Share this article
Open WeChat and scan the QR code