In the first quarter (Q1) of 2010, the local government revenues of the Municipality amount to RMB 75.44 billion, RMB 17.55 billion or 30.3% higher than the previous year, in which the Municipal-level revenues amount to RMB 36.2 billion, RMB 9.02 billion or 33.2% up from the previous year. Among the major revenue items, VAT increases by 11.1%, business tax 40.2%, corporate income tax 22.8%, personal tax 18.9% and contract tax 36.1%.

There are two reasons for the fast growth of revenues in Q1 2010. First, the ongoing economic recovery drives up taxation revenues. The gross industrial output value of scale enterprises, investment in fixed assets, retails of consumer goods, and total value of imports and exports present substantial growths and that fuels the fast growth of the main taxation items like VAT, business tax and corporate income tax. Second, the base of the previous year is relatively low. Due to the global financial crisis and the domestic policy for structural tax cut, the local government revenues of Q1 2009 dropped by 8.4% from the previous year, in which the Municipal-level revenues dropped by 10%. That has made the growth this year higher.