China predicts drop in tax revenue
29 January 2004
The growth of government revenue will slow this year after expanding rapidly last year, China's Ministry of Finance said.
Revenue exceeded RMB 2 trillion for the first time last year, up 20% over 2002, government statistics showed.
The ministry said that it was likely the central government would further reduce tariffs and deepen tax reforms - measures that would cut into government income.
Despite the predicted slowdown, government expenditure would increase due to the authorities' commitments to reviving businesses in the northeast, stimulating the economy in western provinces, standardizing the rural tax system and providing poverty relief to rural residents.