Local Revenue

 

June, 2011

In H1 2011, the local government revenues of the Municipality amount to RMB 202.11 billion, RMB 45.7 billion or 29.2% higher than the previous year, in which the Municipal-level revenues amounts to RMB 96.66 billion, RMB 21.86 billion or 29.2% up from the previous year. Among the major items, VAT increases by 14.2%, business tax increases by 12.6%, corporate income tax increases by 28.7%, personal income tax increases by 28.9%, and other taxes increase by 58.7%.

So far this year, owing to the Municipality's stable economic growth, the fast growth of industrial production and consumer services, and the fact that the State starts levying urban maintenance and construction tax and education surcharges on foreign invested enterprises and the Municipality strengthens supervision on the levy of taxes on real estate projects to exercise macro-control over the real estate market, the local government revenues grow fast. However, since Q2, as real estate transaction slumps and the cost of industrial enterprises rises, the growth of local government revenues slows down.