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China's fiscal revenue growth to slow in H2

2011-07-27 08:46

BEIJING -- China's fiscal revenue will increase at a slower pace in the second half of this year, following an array of tax cuts, the Ministry of Finance (MOF) said on Tuesday.

Reductions in personal income tax, value-added tax, sales tax, and small business tax will lead to slowing growth, the ministry said in a statement on its website.

Fiscal revenue rose 31.2 percent year-on-year to 5.69 trillion yuan ($875.5 billion) in the first half of this year, boosted by the country's fast economic growth and rising consumer prices, it said.

The MOC will spend more on education, health care for rural residents, pension, and affordable housing construction in the second half, it said.

The ministry said it will also work out more detailed policies to ensure 10 percent of government's land sale revenues be spent on improving rural water conservancy facilities as the nation faces increasing drought threats.

Fiscal revenue in China includes taxes, administrative fees and other sources of government income, such as fines, and income from State-owned assets.

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