Total tax revenue remitted to the state coffers in 2004,
excluding tariff and agricultural tax, hit 2.6 trillion yuan
(US$310.7 billion), a jump of 25.7 percent or 525.6 billion yuan
(US$63.6 billion) from the previous year, said Commissioner Xie
Xuren of the State Administration of Taxation (SAT) at a Tuesday
morning press conference.
The ratio of tax revenue to gross domestic product was around 19
percent, approximately 1.5 percentage points higher than the
previous year.
Tax rebates totaling 420.0 billion yuan (US$50.7 billion) were
granted nationwide in 2004, leaping 106 percent or 216.1 billion
yuan (US$26.1 billion). Some 200.4 billion yuan (US$24.2 billion)
was the rebate arrears aggregate prior to 2003; all rebates in
arrears were settled.
Xie said that SAT strictly maintained the principles of tax
administration within the law: all taxes due to be collected in
full, no taxes to be collected in advance and no unauthorized
granting of reductions and exemptions.
Tax reforms continued through the year. The new rebate system
was fully implemented, while fee-to-tax reform in rural areas
progressed. The pilot value-added tax conversion program was
launched in the old industrial bases in northeast China. Tax
administration systems and internal management were standardized
and improved.
SAT sorted out and implemented preferential tax policies for
development zones. It strengthened tax collection and intensified
supervision. Computerization was accelerated to improve services to
taxpayers.
In 2005, SAT intends to continue enhancing the quality and
efficiency of tax collection and administration to ensure steady
tax revenue growth in line with economic development, while
improving internal management and strengthening the governance
abilities of tax authorities and administrators.
(China.org.cn by Tang Fuchun,?January 11, 2005)