In 2005, China's total tax revenue topped RMB3.0866 trillion (excluding tariffs and agricultural taxes), up 20% and 514.8 billion yuan over 2004 and exceeding RMB3 trillion for the first time.

At the press conference sponsored by the State Council Information Office yesterday, Xie Xuren, commissioner of State Administration of Taxation, briefed the press on the taxation work in 2005 and working plans for 2006.

During the 10th five-year plan period, the total tax revenue remitted into the state coffer amounts to RMB10.9217 trillion, with an average annual increase of 19.5%; and the revenue in the fifth year more than doubles that in the first year.

The fast and steady growth of the tax revenue in pace with the economic growth has greatly enhanced the country's financial strength and provided solid financial guarantee for the country's efforts to build a well-off society in an all-round way.

The taxation work in 2005 bears the following three features:

First, tax revenue growth is basically in line with the pace of economic growth, as can be reflected by the comparative analyses of major tax revenue contributors including domestic VAT, business tax, enterprise income tax, import taxes collected by the Customs on behalf and their corresponding economic indicators.

Second, the major contributors to revenue growth are turnover taxes and income taxes. Revenue growth from turnover taxes including the domestic VAT, exercise tax and business tax accounts for 49.5 percent of the total revenue growth, about the same level of 2004. Revenue growth from domestic and foreign enterprises income taxes and individual income tax accounts for 34.8 percent of the total revenue growth, 9.2 percentage points more than that in 2004.

Finally, revenues for the eastern, central and western regions increase by 19.2 percent, 22.4 percent and 21.7 percent respectively, with the growth rates for the central region and the western region being 3.2 and 2.5 percentage points higher than that for the eastern region respectively.

The fast growth in tax revenue for 2005 is a reflection of the steady and speedy growth of the national economy in 2005. It's also attributable to the support of various levels of governments and CPC committees and various sectors of the society as a whole.

Another contributing factor is the efforts of tax administrations across the country to move taxation work under the rule of law and strengthen tax administration work. Last but not least, faithful taxpayers have contributed their bit by honestly complying with their tax liability.