China's fiscal revenue fell 1.2 percent in February year on year to 410.82 billion yuan (US$60.08 billion), as the country's economic growth pace slowed down, the Ministry of Finance said on Friday.

Tax revenue shrank 13 percent in the first two months to 923.73 billion yuan, the MOF said in a web statement.

Business profits shrank, the MOF said. In addition, tax cuts to spur the economy reduced government revenues.

On January 14, China announced a plan to halve, to 5 percent, the purchase tax on cars with engine displacements of less than 1.6 liters. The lower rate took effect on January 20.

In the first two months, business tax revenue fell 5.1 percent, while revenue from the car purchase tax and stamp taxes on shares shrank 6 percent and 90 percent. Specific figures were not available.

In an effort to boost the equities market, the government cut the share trading stamp tax from 0.3 percent to 0.1 percent last April and scrapped the stamp tax on stock purchases in September.

(Xinhua News Agency March 13, 2009)