Tax revenues are forecast to increase this year as Chinese authorities continue to strengthen tax administration and collection. Beijing has been striving to increase tax revenues in recent years to offset declining contributions by money-losing state-owned enterprises. Tax revenues for this year were expected to exceed 1.5 trillion yuan (about HK$1.4 trillion), Vice-Premier Li Lanqing said. China has already collected 1.37 trillion yuan in tax revenues, excluding customs duties and farm taxes, for the first 11 months of the year, according to Xinhua. Beijing is expected to see more than one trillion yuan from value-added, consumption and corporate taxes go into its coffers for the first time, according to Xinhua. Regional governments will probably receive less than 500 billion yuan from business and property taxes. By comparison, China's tax revenues totalled 1.18 trillion yuan last year, according to the State Administration of Taxation of China Web site. 'What China has done successfully is implement the Golden Tax project,' said Ernst & Young partner Alfred Shum, referring to the computerised system for monitoring value-added tax collection. Although China started work on the Golden Tax project in 1994, it did not go online until this year. Many companies took advantage of a 17 per cent value-added tax rebate on exports and filed false rebates for non-existent exports. The Golden Tax project will provide a centralised management system to prevent buyers and sellers in separate cities from filing false rebates. Mr Li singled out tax evasion at petrol stations and open-market vendors as areas that need addressing. Petrol stations are taxed based on their volume of sales and can easily falsify sales reports to avoid paying higher taxes. 'Computerisation will ask petrol stations to install counters to measure the volume of sales,' said Bolivia Cheung, KPMG's senior manager of China tax. Tax collection from vendors in open markets is a problem as it is difficult for officials to determine revenues earned from stalls.