(Beijing Bloomberg) China ’s weak consumption and the shrinking real estate have reduced government taxes sharply. In the first nine months of this year, the fiscal deficit reached a record high.
According to Bloomberg, the Chinese Ministry of Finance announced on Tuesday (October 25) that data showed that government revenue dropped by 6.6 % to 15.3 trillion yuan from January to September this year (RMB, with the same below, about 3 trillion yuan, about 3 trillion yuanXinyuan), the deficit was 7.16 trillion yuan, which was almost three times the deficit of 2.6 trillion yuan in the same period last year.During the same period, the deed tax in land and real estate -related taxes fell by 27.1 % year -on -year; vehicle purchase tax decreased by 30.9 % year -on -year.
In addition to the decrease in taxation, the Chinese government also faces many revenue and expenditure challenges this year.In order to curb the epidemic, large cities have repeatedly blocked, and the cost of control and testing has also risen.On the other hand, the government is also under pressure to increase infrastructure expenditures to stimulate economic growth.
The Ministry of Finance's part of the reasons for the decline in income is on the official measures to reduce the company's tax cuts to promote economic measures.The department said that the government is currently focusing on infrastructure to promote growth and creation of employment opportunities, with expenditure increased by 6.2 % to 1.904 trillion yuan.
Data show that corporate income tax and personal income tax revenue increased by 2.1 % and 9.1 % during January to September this year.
