Chinese tax revenue is up 29.6% to 5 trillion yuan (US$773 billion) in the first half of this year, reports Shanghai Daily. Personal income tax revenue is up 35% and resource tax revenue rose 45%.The government credits stable economic growth, rising company profits, and inflation with this substantial increase.
That’s really good news, given the concern over local munis and growing debts, which were at $1,650 billion at the end of last month.
Via Shanghai Daily
While a “sizable bailout” will be required, China’s “local debt problem does not have to trigger a banking crisis or a macro-economic slowdown,” Stephen Green, the Hong Kong-based head of China research at Standard Chartered Plc, said in an e-mailed note, dated Monday and received yesterday. “The central government’s balance sheet and tax collection capabilities combined with strong nominal growth should mean this challenge can be met.”