Tax revenue stood at 436.1 billion yuan (US$52.5 billion) for the three months to March 20 this year, an increase of 94.9 billion yuan (US$11.4 billion) over the same period in 2002, the administration said.

Its director, Xie Xuren, said the jump in tax revenue was mainly due to the country's sound economic development so far this year.

"In the first two months, the growth rate of industrial output was much faster than that of last year," Xie said.

"Retail sales of consumer goods also grew solidly.

"All of these factors formed a sound foundation for taxation."

The government's efforts to beef up tax collection also helped, Xie said.

Zhang Peisen, a senior expert with the Taxation Research Institute, predicted the country's economy would continue to grow at a higher rate for the rest of this year.

"The country's consumer goods market will pick up, and non-government investment, including foreign investment, will become more active," Zhang said.

This will help China's tax revenue grow faster, because economic development is expected to contribute about 60 per cent to total tax revenue this year, he said.

The government will also continue to boost tax collection this year in a campaign expected to contribute more than 30 per cent to total tax revenue, Zhang said.

A senior official of the State Administration of Taxation earlier said the government would target taxpayers who paid annual value-added tax and consumption tax of more than 5 million yuan (US$602,400) and those who paid annual business tax of more than 1 million yuan (US$120,500) in its audits.

(China Daily April 2, 2003)