China’s fiscal revenue rises 13.9% due to property tax

The Ministry of Finance said in a report last Thursday that China’s fiscal revenue rose 13.9 percent year on year in June, posting its biggest gain this year as property tax payments increased.

Government revenue reached 1.53 trillion yuan (US$246 billion) in June, lifting the first-half revenue by 6.6 percent to 7.96 trillion yuan.

The revenue gain last month was contributed by taxes paid by companies which posted stronger earnings, and a warmer property market, the monthly report said.

Property-related tax income climbed 3.7 percent in June from a year earlier, its first annual increase this year, it added.

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Domestic consumption tax surged 31.4 percent year on year to 86.1 billion yuan, while corporate income tax rose 17.5 percent to 274 billion yuan, the ministry said.

China’s gross domestic product grew 7 percent year on year in the second quarter of this year — slightly above market hopes, according to data yesterday.

Xu Gao, chief economist at Everbright Securities Co, cautioned that the continued slowdown in the economy is likely to weigh on the government’s revenue.