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Economy grew 9.8% in 2005 - vice minister
(Reuters)
Updated: 2006-01-02 09:00

Budget revenue closely reflects the state of the economy because rising personal incomes and corporate profits result directly in bigger tax cheques posted to the government.

While inflation can also enhance revenue, especially by lifting people into higher tax brackets, Chinese prices have risen little lately. November consumer prices were up just 1.3 percent from a year earlier.

The tax administration said its revenue figure excluded customs duties and agricultural tax.

The parliament last week approved the scrapping of the decades-old agricultural tax, which farmers must pay regardless of their income. It raised only 1.5 billion yuan last year.


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