Tax Photo: VCG

The growth rate of invoice sales and tax revenue has steadily rebounded since a meeting of the Political Bureau of the Communist Party of China Central Committee in September 2024, according to official data. 

And, capital market-related taxes have maintained relatively high growth rates, while consumption vitality has continued to be released, which analysts said all point to the continuous consolidation of the positive trend in the Chinese economy. 

Chinese enterprises' overall sales grew in year-on-year terms from the third quarter of 2024 to this year's third quarter. In detail, the sales grew by 0.4 percent in the third quarter of 2024, 2.6 percent in the fourth quarter of 2024, 2.1 percent in the first quarter of 2025, 3.1 percent in the second quarter of 2025, and 4.4 percent in the third quarter of 2025. 

The figures were reported by the Xinhua News Agency on Tuesday, citing latest value-added tax (VAT) invoice data from the State Taxation Administration (STA).

"Tax revenue growth was relatively high in the third quarter of this year, especially in September. In addition to the driving factors from the economy's improvement, the narrowing decline in the producer price index and the lower revenue base in the same period last year all contributed to the tax revenue growth," the head of the relevant department of the STA was quoted as saying in the report.

Manufacturing sector tax revenues accounted for 31 percent of total taxes, demonstrating an obvious "ballast stone" role. In particular, taxes in some high-end manufacturing sectors grew relatively fast, the Xinhua report noted.

Also, VAT grew by 3.2 percent year-on-year, reflecting the improvement in enterprise operations, while corporate income tax grew by 4.1 percent, reflecting the continuous improvement in the profitability of enterprises in some industries, the report said.

Xu Sheng, a member of the Academic Committee and researcher at the Economic Research Institute of the National Development and Reform Commission, China's top economic planner, told Xinhua that the package of incremental pro-growth policies rolled out by the central government was a counter-cyclical and precise adjustment addressing the phased challenges faced by China's economy. The policy effects have been demonstrated in the VAT invoice income and the overall tax revenue data.

Wang Peng, an associate researcher at the Beijing Academy of Social Sciences, told the Global Times on Tuesday that a key driver of the gains was the sustained recovery of the economy, which assisted the operating conditions of all enterprises, helping drive the growth of tax revenue. 

Observers said that tax revenue is a "barometer" of the economy.

For example, "the improvement of corporate profitability showed that the push for industrial upgrading is showing marked progress, with emerging industries developing in synergy with traditional industrial sectors," Wang said. 

The implementation of multiple measures by the government has fueled a vibrant capital market. In August, the total market capitalization of A-share companies exceeded 100 trillion yuan for the first time, and in September, the Shanghai composite stock index reached a decade-long high. 

As a result, taxes in the capital market services sector rose by 56.8 percent year-on-year in the first nine months, with securities transaction stamp duty up by 110.5 percent year-on-year, the CCTV News reported.

The nationwide consumer goods trade-in programs also helped tap into the country's consumption potential. According to the CCTV News report, VAT data showed that during the past year, retail sales revenue involving daily household appliances such as refrigerators and in-home audiovisual equipment increased by 55.4 percent and 35.3 percent year-on-year, respectively.