China'S tax revenue rose 27.4 percent annually to 7.12 trillion yuan (US$1.12 trillion) in the first three quarters, boosted by an expanding economy, price increases and policy adjustments, the Ministry of Finance said yesterday.
From January to September, revenue from value-added taxes, which account for 25.5 percent of the country's total tax revenues, rose 18.7 percent from a year earlier to 1.81 trillion yuan, the ministry said.
Sales taxes, business and personal income taxes saw a year-on-year increase of 24 percent, 35.8 percent and 34.4 percent, respectively.
Gross consumption taxes, which account for 7.7 percent of China's total taxes, jumped an annual 17.7 percent to 552.37 billion yuan in the first nine months.
The ministry said the growth was largely the outcome of a growing economy and accompanying inflation.
Industrial value-added output rose 14.2 percent year on year from January to September. Fixed-asset investment climbed 24.9 percent annually in the period, while the country's retail sales grew 16.9 percent from a year earlier.
The Producer Price Index, a major measure of inflation at the wholesale level, rose 7 percent in the first nine months of the year, while the Consumer Price Index, a main gauge of inflation, gained 5.7 percent in the same period, fueling tax revenue.
On a quarterly basis, the rise in tax revenue slipped, with growth in the first, second and third quarters standing at 32.4 percent, 25.2 percent and 22.6 percent, respectively.
The ministry blamed the country's slowing economic activity for the drop in quarterly growth.
China's economy grew 9.1 percent annually in the third quarter of the year, down from 9.5 percent in the second quarter and 9.7 percent in the first quarter.
Policy adjustments introduced in the third quarter also contributed to the reduction in taxes, including a cut in imported tariffs on certain resources starting in July, and personal income tax reforms that took effect in September, the ministry said.
