China's fiscal revenue fell 1.2 percent in February year-on-year to 410.82 billion yuan (60.08 billion U.S. dollars) as economic growth slowed, the Ministry of Finance (MOF) said Friday.

Tax revenue shrank 13 percent in the first two months to 923.73 billion yuan, while fiscal revenue decreased 11.4 percent to 1.02 trillion yuan in the same period, the MOF said in a web statement.

Fiscal revenue includes taxes as well as administrative fees and other government income, such as fines and income from government-owned assets.

Business profits shrank, the MOF said. In addition, tax cuts to spur the economy reduced government revenues.

On Jan. 14, China announced a plan to halve, to 5 percent, the purchase tax on cars with engine displacements of less than 1.6 liters. The lower rate took effect Jan. 20.

In the first two months, business tax revenue fell 5.1 percent, while revenue from the car purchase tax and stamp taxes on shares shrank 6 percent and 90 percent respectively. The amounts in each category were not released.

In an effort to boost the equity market, the government cut the share trading stamp tax from 0.3 percent to 0.1 percent last April and scrapped the stamp tax on stock purchases in September.

Customs tariff revenue fell 18.8 percent year-on-year during the first two months, said the MOF. It did not provide any further breakdown of the figure.

Trade contracted sharply in February, with exports plummeting 25.7 percent to 64.9 billion U.S. dollars and imports slumping 24.1 percent to 60.05 billion U.S. dollars.

Central government fiscal revenue fell 20.2 percent in the first two months to 516.8 billion yuan, while local government fiscal revenue fell 0.1 percent to 507.1 billion yuan.

China's fiscal revenue exceeded 6.13 trillion yuan for the whole of 2008, up 19.5 percent from the previous year.

(Xinhua News Agency March 13, 2009)