Aug 27, 2024 04:20 AM
CHINA
China’s Fiscal Revenue Falls in July as Economic Slowdown and Property Slump Bite
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A residential project showroom in Xi’an on Aug. 25, 2024.
China’s national fiscal revenue contracted 1.9% year-on-year in July while income from land sales for local governments fell by the largest in two years. This comes at a time when the country is grappling with weak industrial production, sluggish consumption and a prolonged slowdown in the property market.
The decline in fiscal revenue is mainly attributed to a 4% drop in tax revenue, reflecting the ongoing economic challenges and the impact of previous tax cuts.
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- China's national fiscal revenue contracted 1.9% in July, with a notable 40.3% drop in income from land sales.
- Tax revenue fell by 4%, influenced by tax cuts, delayed tax payments, and economic challenges, while particular taxes like VAT and tariffs saw an increase.
- Fiscal expenditure rose by 6.6% in July, reversing earlier declines, but overall budget spending was the slowest in five years at 54.5% of the annual budget.
AI generated, for reference only
What Happened When
- July 2022：
- Reference point for the largest decline in land sales income in two years by July 2024.
- mid-2023：
- Tax reduction policies introduced, along with increased personal income tax deductions.
- June 2024：
- Income from land sales saw a decrease that was 5 percentage points smaller than the drop in July 2024.
- first seven months of 2024：
- National fiscal revenue fell by 2.6%.
- first seven months of 2024：
- Revenue from land sales fell 22.3%.
- first seven months of 2024：
- Budgetary revenue of government-managed funds decreased by 18.5%.
- July 2024：
- China’s national fiscal revenue contracted by 1.9% year-on-year.
- July 2024：
- Corporate income tax revenue fell by 4.9% year-on-year in its third straight month of decline.
- July 2024：
- Income from land sales for local governments fell by 40.3%, marking the steepest decline since July 2022.
- July 2024：
- Value-added tax (VAT) and consumption tax on imported goods rose by 8.3%, reversing a previous decline.
- July 2024：
- Tariffs increased by 5.2%, reversing from a 9.7% decline in the same month last year.
AI generated, for reference only
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