China state revenue jumps in June, aided by property taxes

[BEIJING] China said government revenue in June was 13.9 per cent higher than a year earlier, thanks in part to higher property tax payments, and this supported a spike in state spending.

The Finance Ministry said on Wednesday that June revenue hit 1.53 trillion yuan (S$335.7 billion) after the biggest annual percentage rise this year. May's total was 1.44 trillion yuan, only 5 per cent above the year-earlier level.

The big rise in June was a result of companies paying more taxes on the back of stronger earnings, as well as a tentative improvement in the housing market, which has battled a downturn since 2014.

The figures could lift hopes that China's economy is stabilising after a difficult half-year that climaxed with a stock market rout.

Data released earlier on Wednesday showed the Chinese economy had annual growth of 7 per cent in April-June, slightly above market expectations.

The ministry said that property-related tax income climbed 3.7 per cent in June from a year ago, its first annual increase this year.

Growth in domestic consumption tax was buoyant, zooming up 31.4 per cent on a yearly basis to 20.6 billion yuan, while corporate income tax increased 17.5 per cent.

The gains helped annual growth in spending quicken to 13.9 per cent in June from May's 2.6 per cent. In April, expenditure spiked 33 per cent from a year earlier.

No details were given on how the government allocated its 1.88 trillion yuan expenditure last month. Authorities have repeatedly vowed to accelerate construction of key development and infrastructure projects to lift the economy.

REUTERS