Driven by stable economic growth and active capital markets, tax revenue has increased steadily so far this year.

From January to August this year, tax revenue collected by the tax authorities increased by 2% year-on-year, with a significant increase in revenue in the months of July and August. To understand the characteristics of tax revenue operations this year and the reasons for the significant increase in the past two months, a journalist interviewed Huang Lixin, director of the Tax Science Research Institute of the State Administration of Taxation. Huang Lixin explained that the preliminary analysis indicates three main reasons: first, the economy is in a stable and positive trend. Second, active trading in the capital market is driving growth. The activity in the capital market significantly increased in July and August, with the Shanghai Stock Exchange Composite Index breaking through 3800 points to reach a new ten-year high. The total market value of A-shares exceeded 100 trillion yuan, and the daily stock turnover reached a new high of 2.3 trillion yuan for the year. The active trading in the capital market not only directly increased tax revenue in the capital market services industry but also led to growth in industries related to the capital market. For example, in July and August, tax revenue in the securities industry increased by over 70%, and in the insurance industry, it increased by over 10%. Additionally, increased returns on investments and stock dividends led to increased corporate income tax and personal income tax revenue. Third, there has been a noticeable increase in the awareness of taxpayers to honestly pay taxes in accordance with the law.