China’s personal income tax revenue soars 13% as top earners face tighter compliance
Local authorities are turning to stricter tax enforcement to shore up mounting budget strains, even as broader income growth lags
With China’s personal income tax revenue jumping more than 13 per cent in the first half of the year – outpacing income growth by nearly eight percentage points – analysts said the gains were largely driven by local tax compliance campaigns targeting higher-income earners.
“The drivers behind June’s brisk growth remained unchanged from May,” said Ge Yuyu, a professor at the Shanghai National Accounting Institute.
In June, the Tax Science Research Institute – a research body affiliated with the State Taxation Administration – attributed this year’s uptick to three main factors: active capital markets, robust growth in sectors such as finance and technology and stricter enforcement by tax authorities.