Interest tax revenue exceeded 12 billion yuan (US$1.45 billion) during the first 10 months of the year, it said.

An official from the administration said Friday that the tax revenue has been growing every month since the country resumed levying it in November last year.

He predicts that the tax revenue will continue to grow next year.

According to the administration, resumption of taxation on interest has also stimulated consumption and investment by individuals and slowed down the increase of savings deposits.

During the first half of this year, retail sales in the country surged by more than 10 percent on the same period last year. The previous year's figure was about 7 percent.

The country's stock markets also soared to new highs in this first half year, with trade volume exceeding the total of last year. The investment funds market has also seen active trading.

The figures indicate Chinese people have diverted part of their savings to consumption and investment, according to the administration.

The structure of personal savings deposits has also changed, it said. The amount of current account deposits surged while the amount of long-term deposits dropped, indicating that people are inclined to spend more on consumption and investment in the short term.

(Xinhua 12/09/2000)