China’s State Council Information Office held a press conference on the country’s achievements in tax reform and development during the 14th Five-Year Plan period (2021-2025), Beijing.
China’s tax and fee revenue since the start of the 14th Five-Year Plan period (2021–2025) is expected to exceed 155 trillion yuan (approximately $21.6 trillion), accounting for roughly 80 percent of the country’s total government revenue, the head of the State Taxation Administration (STA) said on Monday.
Tax revenue alone is projected to surpass 85 trillion yuan, up 13 trillion yuan from the previous five-year period, while other income streams such as social insurance contributions and land transfer proceeds are expected to top 70 trillion yuan, said STA Commissioner Hu Jinglin at a State Council Information Office press conference focused on the country’s tax reform and development.
China has introduced a raft of tax relief measures during the period, with cumulative tax and fee cuts estimated to reach 10.5 trillion yuan, including 9 trillion yuan in export tax rebates.
Hu noted that tax policy continues to play a key role in promoting income redistribution. From 2021 to 2024, the top 10 percent of individual income earners contributed around 90 percent of total personal income tax, while most individuals earning less than 120,000 yuan annually owed little to no tax after settlement.
Hu also said China’s increasing level of openness is reflected in tax data. As of end-June 2025, the number of foreign-invested tax entities in China had risen 12.7 percent compared to 2020. Sales revenue among foreign enterprises has remained stable, and export tax rebates grew at an annual rate of 6.6 percent between 2021 and 2024, with the growth rate climbing to 7.1 percent in the first half of this year.
By sector, manufacturing has contributed the largest share of tax revenue during the plan period, consistently accounting for about 30 percent, reinforcing its role as the cornerstone of the Chinese real economy. The fastest-growing segment has been the modern services sector, including information software and technology services, whose tax share rose 1.6 percentage points from 2020 to 2024.
SOURCE: CGTN News