Heavy fines have become an increasingly common measure as local governments in China seek to bring in much needed revenue, revealing the tip of the iceberg for China’s fiscal predicament. Illustration: Brian Wang
China’s fiscal woes highlighted as local authorities turn to fines, traffic tickets to boost revenues
- Local authorities are struggling with slashed revenues resulting from the property sector slump as well as tax rebates as part of efforts to help virus-hit businesses
- Tax revenues from corporations in the first seven months of the year fell by 13.8 per cent from a year earlier to 10.27 trillion yuan (US$1.48 trillion)
Heavy fines have become an increasingly common measure as local governments in China seek to bring in much needed revenue, revealing the tip of the iceberg for China’s fiscal predicament. Illustration: Brian Wang
