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China’s tax revenue is growing faster as the economy recovers

BEIJING, May 18 (Reuters) – China’s tax revenue rose 11.9% year-on-year in the first four months of 2023, accelerating sharply after rising 0.5% in January-March, officials said Data showed gradual but uneven recovery from the COVID crisis as the economy falters.

Tax revenue totaled 8.32 trillion yuan ($1.20 trillion) in the first four months, while tax expenditure rose 6.8% to 8.64 trillion yuan, the ministry said in a statement Thursday with.

In April, tax revenue rose about 70% year-on-year and accelerated significantly after rising 5.5% in March, Reuters calculations based on the ministry’s data show.

The world’s second-largest economy is recovering after three years of tight COVID-19 containment, but data from April suggests the economy lost momentum early in the second quarter.

Analysts expect China’s economy to grow nearly 8% yoy in the second quarter, accelerating from 4.5% growth in the first quarter, due in part to the fact that last year, bottomed out when widespread COVID lockdowns emerged.

($1 = 6.9121 Chinese Yuan Renminbi)

Reporting by Ellen Zhang and Ryan Woo; Editing by Himani Sarkar

Our standards: The Thomson Reuters Trust Principles.

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