People’s Republic of China: Selected Issues
IMF Staff Country Reports, June 18, 1996
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Bibliographic details
- Published: June 18, 1996
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451807776.002
Overview
- Examines the decline in the revenue-to-GDP ratio for the People’s Republic of China.
- Notes that, in common with most transition countries, China has experienced a sharp decline in fiscal revenues since the initiation of economic reforms.
- Attributes the decline mainly to weakness in tax revenues.
- Describes the secular decline in the revenue ratio and reviews the factors behind the decline.
- Compares China’s experience with that of other transition countries where revenues have tended to decline.
Key findings
- China experienced a sharp decline in fiscal revenues since the initiation of economic reforms.
- The decline in the revenue-to-GDP ratio is driven mainly by weakness in tax revenues.
- The paper documents a secular (long-term) decline in the revenue ratio for China.
- China’s revenue experience is compared with other transition countries, which also tended to see declining revenues.
Subjects and issues covered
- Consumption taxes
- Economic sectors
- Income and capital gains taxes
- Income tax systems
- Public enterprises
- Revenue administration
- Taxes
Notes on document preparation
- Prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with this member country.
- In releasing the document for public use, confidential material may have been removed at the request of the member.
People’s Republic of China: Selected Issues, June 18, 1996.