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Table 3.
Key variables in the base year and China's data
ConceptModel (percent)Calculation based on China's national account dataa (percent)
Private consumption/GDP 38.8 39.2 
Tax revenue/GDP 18.0 17.5 
Value-added tax/Total tax 48.3 48.4b 
Output tax/Total tax 6.1 6.0c 
Other taxes/Total tax 45.6 45.6d 
ConceptModel (percent)Calculation based on China's national account dataa (percent)
Private consumption/GDP 38.8 39.2 
Tax revenue/GDP 18.0 17.5 
Value-added tax/Total tax 48.3 48.4b 
Output tax/Total tax 6.1 6.0c 
Other taxes/Total tax 45.6 45.6d 

Notes:a. If not specified, the figures are the actual data for 2016 from China National Bureau of Statistics (2017).

b. Here value-added tax revenue includes domestic value-added tax, domestic consumption tax (similar to excise tax in the United States), business tax, plus VAT and consumption tax from imports, and minus VAT and consumption tax rebate for exports. Since 2009, China excluded investment from the tax base of value-added tax (VAT), and the VAT became a form of consumption tax. With the reform of substituting VAT for business tax, business tax was replaced by VAT in 2016.

c. Here output tax revenue includes resource tax, tariffs, and deed tax. They are all taxed on the amount of sales, and can be considered as a tax on output.

d. The other taxes are captured by the lump sum tax in the model.

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