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China's tax revenue up 25.7% in 2004
(Xinhua)
Updated: 2005-01-11 16:46

China's top tax official said Tuesday that China's total tax revenue hit 2.57 trillion yuan (US$313 billion) in 2004, up 25.7 percent on a yearly basis.

Xie Xuren, director general of the State Administration of Taxation, said the figure, which excludes customs tariffs and agricultural taxes, represents a record high for the country's taxrevenue.

Xie Xuren, director general of the State Administration of Taxation, said in Beijing January 11 that China's total tax revenue hit 2.57 trillion yuan (US$313 billion) in 2004, up 25.7%. [Xinhua]

He told a press conference held by the Information Office of the State Council, China's tax revenue increased by 525.6 billion yuan (US$64 billion), also a record high.

The administration owed the rapid increase to China's fast economic growth, robust foreign trade expansion, increased returnsof Chinese firms and improved efforts by tax bureaus in collectingtaxes and cracking down on tax evasion.

Tax administrations at various levels paid a total of 420 billion yuan (US$51 billion) in tax rebates for the country's exporters last year, up 106 percent year-on-year, or an increase of 216 billion yuan (US$26 billion), said the director general.

China also paid 200 billion yuan (US$24 billion) in delayed tax rebates, which the central governments owed to exporters before 2003.

Officials said the payment of the tax rebates have increased the cash liquidity of the exporters.

The director general said the administration will, among other things, prepare to restructure corporate income tax laws, including one that offers preferential treatment to overseas-funded firms and one for domestic firms.

China will also work hard to improve its private income tax policy and work on ways to properly expand the scope the consumption law covers and adjust its rates, while exploring ways to reform the real estate tax policy and resources tax policy.

Meanwhile, China will introduce a fuel tax at a proper time when world oil prices drop to appropriate levels.

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