State Administration of Taxation: In the past two years, China's tax revenue has been directly affected by the Producer Price Index (PPI).

Hu Jinglin, director of the State Administration of Taxation, stated at a press conference that from the perspective of the coordination between taxation and the economy, the economy determines taxation, but there are also factors that can impact and cause the economy and taxation to be not completely synchronized. For example, factors such as tax reduction and fee reduction have had a significant impact in China in recent years. This has played a role in boosting economic growth and is also beneficial for long-term tax revenue, but it will reduce current tax revenue. Another factor is price changes. GDP growth rate is calculated at constant prices, while tax revenue is calculated at current prices. Prices, especially the Producer Price Index (PPI), have a significant impact on tax revenue. Changes in the PPI will lead to corresponding changes in tax revenue. "It can be said that in the past couple of years, tax revenue has been directly influenced by the PPI," Hu Jinglin said.