Tax revenue growth in 2016 slowed
China saw slower year-on-year tax revenue growth in 2016, data from the nation’s tax authority showed.
Slower growth of tax revenue points to higher short-term pressure on government spending, but the economy will benefit in the long run after tax cut policies for enterprises gradually show results, experts said.
China collected $1.67 trillion (11.59 trillion yuan) in taxes last year, up by 4.8 percent year-onyear, but lower than the 6.6 percent growth rate in 2015, data from the State Administration of Taxation showed.
The growth rate of tax revenue was 1.9 percentage points lower than the 6.7 percent GDP growth rate, showing a wider difference compared with a year ago. The tax revenue growth rate continued to run slower than that of GDP growth starting in 2012.