Transcript taxes on products

Coverage of OECD NA
Questionnaire by Chinese Data
ZHAO Hong
Department of National Accounts, NBS
6-10 November, 2006，Paris
Contents
Annual Data
• 0101A—Gross value added at basic prices and gross domestic
product at market prices
• 0102A—GDP identity from the expenditure side
• 0103A—GDP identity from the income side
• 0107A—Disposable income, saving, net lending/borrowing
• 0109A—Real disposable income
• 0110A—Population and employment
• 0111A—Employment by industry
• 0117A—Final consumption expenditure of households by durability
• 0200A—Main aggregates of general government
Quarterly Data
General Description
Main difficulties in joining the OECD data
dissemination program
1. Classification—industrial, sectors；
2. Transaction items— COFOG, COICOPE,
products, detailed breakdowns；
3. Valuation—basic price, replacement price,
holding gains；
4. Consolidated information—financial assets；
5. Volume measures—accounting methods, nopublication；
6. Balance sheet—not regular, no-publication.
0101A—Gross value added at basic prices and gross
domestic product at market prices
Current data are available, but need some adjustment in two aspects:
A. Valuation
1. Producer’s price and basic price
（1）Relationship between value-added at basic price and GDP at market price in the SNA:
value-added at basic price + taxes on products = GDP at market price
（2） Relationship between producer’s price and basic price in the SNA:
producer’s price = basic price + other taxes on products other than VAT
2. Taxes in China—7 types，29 groups (Appendix 2)
taxes on production = taxes revenue – income type taxes – taxes on properties (current and capital)
Of which, taxes on products
= turnover type taxes（value added type taxes, general sales taxes, import duties,
excise duties and consumption taxes）
+ Car registration taxes
+ fuel consumption taxes
+ behavior taxes ( taxes on car using, business and professional licences etc.)
taxes on other production = taxes on production – taxes on products
3. Chinese type producer’s price：including non-deductible VAT, inconsistent with producer’s price in SNA
4. Relationship between value-added at Chinese type producer’s price and GDP at market price:
∑ value-added at Chinese type producer’s price= GDP at market price
Value-added adjustment from Chinese producer
‘s price to OECD basic price：
1.
Direct method: First, deriving taxes on products by
industry by aggregating corresponding taxes revenues
from the taxes authorities. Second, deduct taxes on
products from taxes on production to achieve valueadded at basic prices.
2.
Ratio adjustment method: Multiply 75% to taxes on
production to derive taxes on products, then deduct it
from taxes on production to achieve value-added at
basic prices.
3.
No separate data on taxes on production, and
subsidies on production, therefore no separate data on
taxes on products, and subsidies on products
B. Industrial classification
Value-added data are available according
to the new Chinese Standard Industrial
Classification（GB/T 4754-2002）。
However, in terms of time series, data for
some industries need to be adjusted. For
instance, wholesale, retail and
restaurants are put in one industry, which
need to be separated and put the
restaurants into other service activities in
questionnaire 0101A.
Volume measures are not available
• Up to the present, NBS has never published any level data of GDP
at constant prices by production approach. By the end of 2006,
some of the constant data might be released when the 2004
Economic Census data and the revised time series are published.
But no specific information on what and how.
• Users who would like to try to derive constant GDP aggregates by
themselves should be careful not to develop data series based on
growth rate earlier than 1990. Before 1990, the constant GDP
estimation method in China is unique, where even in base year, the
constant data is not set to equal the current data. In 1990, the
practice of constant GDP estimation started follow the international
conventions.
0102A—GDP identity from the expenditure side
Current price data
Part of the current price data are available, but some
concepts bears differences
Households final consumption expenditure
NPISH—classification
Coverage—reimbursement of health expenditure
Actual individual consumption—lack of COFOG
information
Government final consumption expenditure
Government final consumption expenditure
= Final consumption expenditure
– households final consumption expenditure
Households final consumption expenditure
Households final consumption expenditure—differences in
two aspects:
1. Classification：
NPISHs treatment
No adjustment: controlled and mainly financed by
general government
2. Coverage：
reimbursement of health expenditure
No adjustment: Chinese coverage wider that in
OECD countries.
Actual individual consumption
Actual individual consumption
Actual individual consumption
= households final consumption expenditure (including NPISH)
+ government expenditure on individual consumption
Government expenditure on individual consumption including
（COFOG） :
1.
2.
3.
4.
5.
6.
04 Education
05 Health
06 social Security and Welfare
08.01 Sport and recreation
08.02 Culture
Part of other expenditures including provision of housing, collection
of household refuse, the operation of transport system etc.
Gross fixed capital formation
The following information are not available related to gross fixed
capital formation：
1. Gross fixed capital formation by asset
The existing investment statistics can not provide information on
investment by asset, therefore, gross fixed capital formation by
assets in national accounts is not available.
2.
Acquisition less disposal of valuables
No estimation on acquisition less disposal of valuables has
been conducted up to the present in the NBS, therefore it would
be treated as zero in the OECD questionnaire.
The availability of the above two types of information depends
heavily on the improvement of the basic statistics of China,
therefore, no data will be available in short-term.
Volume Measures
Up to the present, NBS has never
published any level data of GDP at
constant prices by expenditure approach.
By the end of 2006, some of the constant
data might be released when the 2004
Economic Census data and the revised
time series are published. But no specific
information on what and how.
0103A—GDP identity from the income side
Only required for current price data，generally can be satisfied
except:
• No separate data on taxes on production and imports, and subsidies
on production and imports
• Industrial classification problems similar to that in 0101A
Up to the present, no data on national GDP components by income
approach have been published.
NBS intends to publish national GDP components by income approach
by the end of 2006 when published the 2004 Census Data and the
revised time series.
Statistical discrepancy in Table 0103A is zero.
Summary
Positive feedback from NBS—very interested in participating in
the OECD data dissemination program
Considerable changes faced by NBS:
1. Establish investment statistics by assets and by industry；
2. Estimate households final consumption expenditure according to
COICOP；
3. Estimate general government final consumption expenditure according
to COFOG；
4. Improve labour statistics, distinguish self-employed persons from
employees by industries, provide working-hours by industry, complete
the coverage of unemployment statistics etc. ；
5.
Separately reflect taxes on products/production, and subsidies on
products/production; and with better detailed information ;
6.
Collect consolidated and non-consolidated data financial transactions
(in collaboration with People’s Bank of China);
7.
Improve the estimation and dissemination of volume measures；
8.
Additional estimation on the unavailable parts of national accounts,
including NPISHs, acquisition and disposal of valuables, other
changes in volume account (consolidated/non-consolidated),
revaluation accounts (consolidated/non-consolidated), balance sheet
for financial assets and liabilities (consolidated/non-consolidated) etc.
Thank you for your attention!