Beijing met its yearly target of collecting tax revenue by the end of last month, according to Xinhua. Tax revenue grew by a record 200 billion yuan (about HK$187 billion) to 1.13 trillion yuan in the first 11 months, bolstered by better collection, a robust economy and rising corporate profits, the agency said. The State Administration of Taxation said the revenue accounted for 102.3 per cent of Beijing's planned annual target. Economic growth and improved profits of enterprises had contributed to 60 per cent to 70 per cent of the increase of tax revenue this year, the administration said. One-off factors such as the adjustment of preferential policies toward companies with overseas investment, cancellation of tax incentives to enterprises run by schools, the resumption of levying income tax on interest of savings deposits and rocketing oil and steel prices had increased tax revenue by about 40 billion yuan to 50 billion yuan, it said. Taxation authorities at all levels had successfully reclaimed 22 billion yuan in defaulted taxes by the end of last month. Tax evasion has been widespread and violence against collectors common in China. However, three weeks ago it was reported that Beijing was setting up a 300,000-strong armed police force to enforce tax collection and stop violence against collectors. Tax revenues made up 14 per cent of gross domestic product last year, which was substantially lower than in developed countries. In 1994, Beijing reformed its tax system, moving from the planned economy when most taxes were collected from state companies to one in which taxes are collected from individuals and firms.