China's securities stamp tax revenue more than doubled in 2006, backed by the
huge transaction volume.
The government received 17.95 billion yuan (2.24 billion US dollars) in
securities stamp duty last year, up 166 percent over 2005, according to the
State Administration of Taxation (SAT).
Spurred by heavy capital inflow, revenue soared despite the tax rate cut, Xie
Xuren, director of the SAT said here on Wednesday.
The government required both buyers and sellers of stocks to pay stamp tax
according to the transaction volume.
The government halved the stamp duty rate to 0.1 percent from Jan. 24, 2005
in a bid to help boost the depressed equity market.
China's stock markets ended a five-year bearish period last year. The
benchmark Shanghai Composite Index surged 130 percent to 2,675 points at the end
of 2006. The two mainland stock exchanges registered aggregate turnover of 9.05
trillion yuan in 2006, an increase of 186.22 percent on 2005.