Sharp slowdown seen in fiscal revenue (2)

The country's fiscal income growth from corporate income tax in the first two months also declined to 3.5 percent from 12 percent last year.

"Many small- and medium-sized companies, especially those doing business overseas, are having a very difficult time keeping afloat," an official with Jiaxing State Taxation Bureau in East China's Zhejiang Province told the Global Times, on condition of anonymity.

Gou Yannan, director of the Fudan Center for Public Budgeting and Performance Evaluation at Fudan University, told the Global Times Wednesday that he thinks reducing tax will not be easy for local governments.

"The expenditure on improving people's livelihood has to increase, which will mean that taxes will not be cut substantially," said Gou, noting that it is time for local governments to strengthen their transparency and improve their efficiency in spending taxpayers' money.