According to official data from the Chinese Communist Party, the national tax revenue has decreased by 5.4% in the first 7 months of this year, with the securities transaction stamp tax plummeting by 55%, sparking discussions.
On August 26, the Chinese Communist Party’s Ministry of Finance released the financial data for July, showing that in the period of January to July, the central government’s general public budget revenue was 597.45 billion yuan, a 6.4% decrease compared to the same period last year; while local government’s general public budget revenue at the provincial level was 759.18 billion yuan, a 0.6% increase year-on-year.
In terms of tax and non-tax revenue, from January to July, the national tax revenue fell by 5.4% year-on-year; while non-tax revenue surprisingly grew by 12%, with some local data showing a 26.5% increase in fine confiscation revenue.
Regarding tax revenue, major tax categories have mostly declined, including the stamp tax at 212 billion yuan, a 20.9% decrease compared to the previous year. The securities transaction stamp tax at 57.6 billion yuan experienced a significant plunge of 55% year-on-year, sparking hot debates online.
Financial blogger and Weibo influencer “Xiao Liu Zhongcheng” commented: “Revealing the mystery of the stock market! The Ministry of Finance reveals: a shocking 55% decrease in stamp tax during the first 7 months! As the stock market fluctuates once again, the Ministry of Finance’s statement is astonishing! The 55% decrease in stamp tax in the first 7 months of this year has left the market in awe.”
Financial blogger and Weibo influencer “Warm and Lovely Sister” said: “The stamp tax is the most direct indicator. Those experts who used to talk nonsense every day can now keep quiet. Facts speak louder than words. Why is no one interested in trading A shares anymore? Everyone has concerns, from the system to the industry, and to individual stocks, there are a lot of problems. Only a few institutions are making money, and people have lost interest in playing the market.”
Financial blogger “Zhongguancun Nan Dashijie” said: “This headline is ambiguous. It’s not that the tax rate has decreased, but rather the lack of active trading that resulted in lower revenue. The stock market is an indicator of the economy, a saying that seems to be forgotten these days.”
One of China’s most influential financial writers, “Su Yu,” expressed: “In my personal opinion: with the stock market stuck in a long-term slump and trading volumes hitting new lows repeatedly, it might be better to just cancel the stamp tax.”