China’s November Fiscal Revenue Growth Positive but Weak

China's revenues expanded 10.6 per cent in November from year-ago figures of $101 billion. However, it was a sharp fall month-on-month from October's 16.9 per cent and September's 17 per cent recorded growth, data from the Ministry of Finance showed Sunday.

In its Web site, the Finance Ministry said adjustments made in its fiscal policies and tax schemes, as well as decreases in personal income tax and falling taxes from weakening property and auto sales, contributed to the deceleration.

Austerity measures to curb property market speculation, meanwhile, which incorporated home buying limits and tighter credit, triggered residential value to drop for a third month in November, according to Soufun Holdings Ltd.

Vehicle sales in November slid 2.4 per cent year-on-year after passenger car sales grew by only 0.3 per cent to 1.34 million vehicles, data from the China Association of Automobile Manufacturers showed. It was the industry's slowest recorded growth in six months.

The ministry said in its first 11 months, the country's fiscal income grew 26.8 per cent annually to 9.73 trillion yuan. Fiscal spending hiked 24.3 per cent annually to 8.9 trillion yuan.

November revenues from personal income tax dropped 8.2 per cent year on year to 32.3 billion yuan, as the government raised the personal income tax threshold by 75 per cent to 3,500 yuan per month. The move effectively reduced China's number of taxpayers by 60 million.