The tax revenues for bank deposit interest hit 12.05 billion yuan for the year after China levied taxes on interest.
An official with the State Administration of Taxation said November 17 that since the taxation started on November 1 last year, tax revenues in the sector have increased on a monthly basis, and the tax has also played a positive role in stimulating consumption and domestic demand.
Statistics indicate that the tax has caused a decline in fixed-term bank deposits and the growth of current deposits, with some deposits flowing into the securities market.
The official said that revenues from the tax will be used to mainly increase subsidies to laid-off workers of state-owned enterprises and the pensions to retired workers, and to improve the lives of low-income urban residents.
(People’s Daily 11/17/2000)
