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.
Reference(s):
China's 2021-25 tax revenue to top 155 tln yuan, with 10.5 tln in cuts
cgtn.com
