City and county’s national tax revenue had the 3rd greatest increase in the province despite national tax revenue decline in Q1

In the first quarter of this year, the city’s total state income tax revenue was RMB 3.27 billion, a 16.5% year-over-year (“YOY”) decline and a decrease of RMB 650 million. The growth rate dropped by 43.4% compared with the same quarter last year (Growth rate in Q1, 2008: 26.9%). The domestic tax revenue collected by Zhuhai State Tax Bureau was RMB 2.71 billion after deducting the custom duties revenue collected, which had a 7.5% YOY growth and an increase of RMB 190 million. It was the 4th greatest increase in the province. Among the RMB 2.72 billion, Central tax revenue dropped to RMB 2.59 billion, which was a YOY decline of 20.2% and a reduction of RMB 650 million. The provincial tax revenue was RMB 79.6 million, a 31.5% YOY drop and a reduction of RMB 36.6 million. However, the city and county’s tax revenue was RMB 610 million, which had a YOY growth rate of 7.4% and an increase of RMB 41.58 million. The city and county’s tax revenue had the 3rd greatest increment in the province. The general downward trend in tax income and the reducing Central tax revenue were the results of the substantial decline in custom duties revenue collected. The customs duties revenue collected was RMB 570 million in the first quarter with a YOY decline rate of 59.6% and a drop of RMB 840 million. From the volume perspective, the settlement fiscal revenue growth was the main driving force to increase domestic and local tax revenue. The settlement fiscal revenue was RMB 750 million for the first quarter this year, which was a 25.1% YOY growth and an increase of RMB 150 million. The settlement fiscal revenue was 79.6 % of the domestic tax revenue growth which resulted in a growth rate close to 6% in the total tax revenue. The settlement fiscal revenue brought RMB 190 million to the city and county’s government, which accounted for 30.9% of the city and county’s total revenue. And the settlement fiscal revenue also reached record high in the recent 3 years. Comparatively, direct tax income was only RMB 1.96 billion, which had a YOY growth of RMB 38.48 million and an increase of 2.01%. From the industry perspective, the tax contribution from the manufacturing industry was the highest. The direct tax income from wholesaling and retailing, finance and security, property, business services and software industry were all declining. Manufacturing was the pillar source of national tax revenue in Zhuhai. The direct contributed tax revenue was RMB 1.13 billion in Q1, which accounted for 57.6% of the total city’s direct tax revenue with a 21.56% YOY growth. The reduction of direct tax revenue from the property and business service industry was even more substantial, which was 73.17% and 80.06% respectively. Disclaimer: The publication contains information in summary form and is therefore intended for general guidance only. This publication is not intended as legal, accounting or other professional advice and should not be relied upon as such. If legal, accounting or other professional advice or expert assistance is required, the services of a competent professional should be sought. Neither Zhuhai Reanda Certified Tax Agents Co., Ltd. nor any related entity shall have any liability to any person or entity that relies on the information contained in this publication.