IMF Staff Country Reports

People’s Republic of China: Selected Issues

Publication Date:

June 18, 1996

Summary:

This Selected Issues paper examines the decline in the revenue-to-GDP ratio for the People’s Republic of China. In common with most transition countries, China has experienced a sharp decline in fiscal revenues since the initiation of economic reforms, owing mainly to weakness in tax revenues. This paper describes the secular decline in the revenue ratio in China and reviews the factors behind the decline. It also compares China’s experience with that of other transition countries where revenues have tended to decline.

Series:

Country Report No. 1996/041

Subject:

Consumption taxes Economic sectors Income and capital gains taxes Income tax systems Public enterprises Revenue administration Taxes

Notes:

This report was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with this member country. In releasing this document for public use, confidential material may have been removed at the request of the member.