What’s new: Governments in China brought in 11.2% less fiscal revenue in November than the same month a year earlier, the third straight month of decline, according to Caixin calculations based on Ministry of Finance data (link in Chinese) released Friday.
China’s central and local governments suffered aggregate year-on-year fiscal revenue declines of 0.1% in October and 2.1% in September, according to ministry data. The ministry pinned last month’s drop on the tax relief that the government provided to companies that run coal-fired power plants, heating companies, as well as micro, small and midsize manufacturers.
Tax revenue in November was down 13.1% from a year earlier, compared with a 2.2% decline in October, the data showed.
The background: On Oct. 27, the State Council, China’s cabinet, announced that it would grant coal-fired power plants, heating companies and micro, small and midsize manufacturers the option to postpone paying their fourth-quarter taxes by up to three months.
The decision, which came as power shortages across China disrupted manufacturing and winter heating facilities, aimed to give more financial breathing room to companies hit by rising commodity prices and production costs, the State Council said.
Related: Cover Story: How China Stumbled Into a Giant Energy Shortage
Contact reporter Tang Ziyi (ziyitang@caixin.com) and editor Michael Bellart (michaelbellart@caixin.com)
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