Fiscal Revenue Growth of 0.7% in January-February, Individual Income Tax Growth Fluctuates Due to Delayed Payment Processing

How does AI · Personal Income Tax Fluctuation Affect the Overall Tax Revenue Trend?

21st Century Business Herald Reporter Zhou Xiaoxiao Beijing Report On March 19, the Ministry of Finance released fiscal revenue and expenditure data for January and February.

In January and February, the national general public budget revenue was approximately 4.4154 trillion yuan, a year-on-year increase of 0.7%. Among them, national tax revenue was 3.6393 trillion yuan, up 0.1% year-on-year; non-tax revenue was 776.1 billion yuan, up 3.4%. Meanwhile, due to proactive fiscal policies being implemented early, the national general public budget expenditure for January and February was 4.6706 trillion yuan, an increase of 3.6% year-on-year, with expenditure progress accelerating.

Looking at the main tax types, as key economic indicators improved in January and February, especially with moderate price increases, the growth rate of some main taxes rebounded. However, because the Spring Festival was relatively late this year, some tax revenues were delayed in collection.

Specifically, in January and February, domestic VAT was 1.5838 trillion yuan, a 4.7% increase, higher than the 3.4% growth rate for the entire previous year, mainly driven by a rebound in industrial and service production data, as well as a narrowing of PPI declines.

Corporate income tax for January and February was 875.9 billion yuan, down 3.9% year-on-year, compared to a 1% growth for the whole of last year. A relevant official from the Ministry of Finance stated that the slowdown in corporate income tax growth was mainly due to some pre-collected and settled income tax from last year’s tax reconciliation being recorded earlier, which elevated the base.

Influenced by double-digit growth in import and export figures in January and February, related import and export tax revenues increased significantly. In January and February, import VAT and consumption tax totaled 296.3 billion yuan, up 12.9%; tariffs were 36.1 billion yuan, up 14.4%. Meanwhile, export VAT and consumption tax refunds amounted to 556.9 billion yuan, an increase of 9.7%.

Personal income tax for January and February was 384.6 billion yuan, down 6.9% year-on-year. Last year, personal income tax revenue performed well, with an 11.5% increase for the whole year. A relevant official from the Ministry of Finance explained that the 6.9% decline was mainly because last year’s Spring Festival was earlier, with year-end bonuses and dividends for 2024 being paid and taxed earlier, raising the base. This year, with the Spring Festival in mid to late February, related tax revenues will be delayed in collection, likely leading to a significant rebound in personal income tax in March.

Notably, in January and February, stamp duty on securities transactions was 49.9 billion yuan, more than doubling (up 110%), mainly due to active stock market trading and increased transaction volumes at the beginning of the year.

From an industry perspective, sectors such as manufacturing, modern services, and the service consumption industry during the Spring Festival holiday experienced rapid growth. In January and February, tax revenue from computer and communication equipment manufacturing increased by 9%, electrical machinery manufacturing increased by 9.5%, scientific research and technical services increased by 15.8%, and cultural, sports, and entertainment industries increased by 9.8%.

Real estate transactions became more active in January and February, with positive changes in the real estate market. However, it will take time for these changes to translate into real estate investment, and land transfer income continued to decline accordingly. In January and February, income from land use rights transfer was 354.7 billion yuan, down 25.2% year-on-year.