Sources from the Guangzhou Municipal Office of the State Administration of Taxation said that due to the rapid economic growth and improved working efficiency, local tax revenue concerning foreigners increased rapidly in 2007, amounting to RMB10.57 billion, up by 24.75% compared with 2006. As a result, 18% of the total local taxation in Guangzhou was attributed to foreigners.

A foreigner bargaining with a vendor selling 'rooster' olive, a kind of local snack, in the street. (www. ycwb.com)

In 2007, the second-hand housing market in Guangzhou witnessed large amounts of foreign investment which attributed RMB2.3 billion or about 42% of Guangzhou's total business tax revenue. Driven by prosperous real estate, business tax revenue from industries related to construction and decoration increased by 23.43%, amounting to RMB153 million.

Meanwhile, Guangzhou Municipal Local Taxation Bureau issued regulations and policies on the management of urban real estate taxes, adjustment of stamp taxes and strengthened the liquidation of land value-added taxes concerning foreign enterprises and foreigners. As a result, the urban real estate tax revenue and land value-added tax revenue amounted to RMB489 million and RMB 314 million respectively.

In addition, Guangzhou Municipal Local Taxation Bureau mounted a crackdown on crimes concerning foreigners. Therefore, 416 illegal cases yielded tax revenues of RMB108,696,900.