According to the Ministry of Finance of China, from January to June, the total national tax revenue amounted 5.926061 trillion yuan, an increase of 7.9%. The growth rate dropped by 1.9 percentage points compared to the same period last year.
Compared to last year, the growth rate of domestic tax revenue in China dropped for several main reasons: First, the domestic economic growth rate is down, main economic indicators showed an slowing down economy in China. From January to May, the above-scale industrial added value increased by 9.4% over the same period last year, the growth rate was down 1.3 percentage points; the total retail sales of social consumer goods increased by 12.6% over the same period last year, the growth rate was down 1.9 percentage points.
Second, the general price growth rate was down so that tax revenues under the current prices declined. From January to May, the national consumer price index rose 2.4% over last year, a drop of 1.1 percentage points compared to the same period last year.
Third, the real estate tax incentives and negative growth of the land sale contributed to the larger drop of real estate tax revenue. From January to May, real estate land sale fell by 13.1%.
Fourth, the general trade imports growth fell sharply. The January-June imports grew by 3% year on year, growth rate was down 4.8 percentage points.
Fifth, tax reduction in varying degrees also contributed to the slower growth of tax, such as some fresh meat and egg products are exempted from value-added tax policies.