Local Revenue

 

June, 2010

In the first half (H1) of 2010, the local government revenues of the Municipality amount to RMB 156.41 billion, RMB 29.57 billion or 23.3% higher than the previous year, in which the Municipal-level revenues amount to RMB 75.11 billion, RMB 13.68 billion or 22.3% up from the previous year. Among the major revenue items, VAT goes up by 4.8%, business tax up 27.7%, corporate income tax up 43.4%, personal tax up 14.6% and contract tax up 34%.

The local government revenues of H1 2010 show three characteristics. First, as economic growth gets back to its right track, the secondary sector rises by 19.6% of which nearly 50% comes from such pillar industries as automotives, petrochemicals and steel. Second, Expo 2010 drives up the growth of the tertiary industries. The sector as a whole rises by 24.5%, and all the major industries such as finance, retail and wholesale, hospitality services and business services grow over 20%. Third, the main taxation items play a stronger role in the growth of revenues of which 80% comes from VAT, business tax, corporate income tax and personal income tax.