The Research On The Selection Of Local Main Tax After Replacing Business Tax With VAT

Once upon a time,China has achieved a Chinese-style miracle of rapid economic and social development under the condition that the market economic system is still not perfect and the rule of law is weak.One of the key factors for rapid development is the mobilization of two enthusiasm for central and local development.The competition between the central and local governments,local governments and local governments enables all levels of government to attract investment and create an excellent investment environment,thus stimulating rapid economic development.Taxation is the economic lifeline for the country to survive and develop and the government to operate normally.At the same time as the central and local governments raise fiscal revenues,they use tax policies to control the direction of economic development.The tax-sharing reform in 1994 was a milestone in the history of China's fiscal system reform.The economic decentralization broke through the limitations of administrative decentralization,fully mobilized the enthusiasm of local governments at all levels,and changed the traditional game relationship between the central governments.The central government's ability to provide public goods and public services has been improved,laying a basic framework for the subsequent deepening of the fiscal and taxation system.In 2016,the reform of replacing business tax with VAT was fully implemented.The long-term local main tax,business tax,was withdrawn from the historical stage,which led to the loss of the local main tax and the fragmentation of the local tax system.Under such a background,how to select and cultivate new local main tax types,create a sound local tax system,and mobilize the enthusiasm of local economic development once again become a major problem that needs to be solved urgently in deepening the fiscal and taxation system.After the reform of the camp,the business tax disappeared,and the transition period of the five-fifth of the value-added tax is about to end.After exploring the problems and causes of the local tax,this paper proposes that the tax legislative power or the tax collection and management right should be abandoned at the current stage as the basis for the local taxation.Taking the tax revenue right as the standard of local taxation,the taxation of local income rights is included in the scope of investigation of the local tax system.The center of the tax structure of the main tax category occupies a dominant position in the tax category.To improve the local tax system,it is necessary to firstly clarify the local main tax types,establish the selection criteria for local main tax types,and build a clear tax system.On the basis of summarizing the practical experience of the foreign local tax system,this paper believes that at the micro level,the local main tax should be able to meet local financial needs,guarantee local financial autonomy,and form a positive incentive effect on local government behavior;At the meso level,the local main tax should take into account the central macro-control ability and local regional control ability,and reflect the differentiated public benefit of the local residents;at the macro level,the local main tax should have the value orientation of tax justice,satisfy the substantive justice,procedures the requirements of the three dimensions of justice and institutional justice.Based on this,through the linkage legislative reform,the construction of the dual-subject tax structure of 'consumption tax+resource tax' is an appropriate choice for the local main tax category after the reform.