Tax revenue hits US$676b in 2007

China’s tax revenue totalled US$676.33 billion in 2007, up 31% year-on-year, the Wall Street Journal reported. The figure, seen as a relection of the country’s rise in corporate profits, doesn’t include receipts from customs duties, contract tax and arable land-use tax, according to the State Administration of Taxation. A new corporate income tax law that imposes a unfied 25% tax rate for both foreign and domestic companies took effect on January 1. This will, in general, lower the statuatory tax rate for domestic enterprises from 33% and raise the the tax burden for most foreign-invested firms. Citi economist Huang Yiping said that the new tax law will unlikely significanly impact China’s 2008 tax revenue. "The main driver behind an increase in tax revenue is economic growth, not a change in tax policies," he said.