China's tax and fee revenue during the 14th Five-Year Plan period (2021–2025) is projected to exceed 155 trillion yuan ($21.6 trillion), marking a pivotal shift in fiscal strategy as the country balances economic growth with targeted relief measures. State Taxation Administration Commissioner Hu Jinglin revealed the figures at a Monday press conference, emphasizing the role of tax policy in stabilizing China's post-pandemic recovery.
Breaking Down the Numbers
Tax revenue alone is expected to reach 85 trillion yuan – a 13 trillion yuan increase from the 2016–2020 period. Social insurance contributions and land transfer income will contribute an additional 70 trillion yuan, accounting for 20% of total government revenue. The planned 10.5 trillion yuan in tax cuts reflects Beijing's commitment to supporting businesses amid global economic uncertainties.
Strategic Implications
Analysts note three key impacts:
Businesses gain liquidity through VAT reductions and SME support
Infrastructure projects benefit from sustained land transfer income
Social programs maintain funding through stable insurance contributions
Hu stressed that these measures align with China's 'dual circulation' development strategy, enhancing domestic consumption while maintaining global trade partnerships.
