The Study On The Construction Of Local Tax System Under The Blackground Of Replacing Business Tax With Value Added Tax

Local tax is a major source of local government revenue, while also play an important role in regulating the development of local economy and supervising Local economic activities. China’s current local tax system is based on the1994tax sharing system of financial management system reform in1994, promoting the development of market economy, adjusting the fiscal relations between the central and local, playing a positive role in strengthening the central leading ability and mobilizing the enthusiasm of the central government and local government. The report of the party’s18puts forward to accelerate the reform of the fiscal and taxation systems, and ensure that the central and local governments have sufficient financial resources to exercise their respective powers and fulfill their respective responsibilities, also improve the public finance system to ensure equal access to basic public services and promote the building of functional zones. In October2011the Ministry of Finance and the State Administration of Taxation with the approval of the State Council jointly issued the pilot program of replacing business tax with value added tax. From January1,2012onwards, carry out the pilot program of replacing business tax with value added tax in the transportation industry and parts of modern service industry in Shanghai. To August1,2013,the pilot program pushed across the country, also rail transport and telecommunications and other industries choose the timing to join the pilot. Replacing business tax with value added tax breaks the original running pattern of local tax system, and push the construction of local tax system to the front.On the basis of the domestic and international research results about the local tax system, this papar uses normative analysis, empirical analysis and comparative analysis to make a comprehensive and systematic discussion of the construction of local tax system under the blackground of replacing business tax with value added tax. The paper is divided into five chapters:the first chapter raises the question, clarifies the significance of this study, and introduces the relevant research results at home and abroad, and puts forward the innovation of this paper, and explains the research methods; the second chapter introduces the theoretical foundation of the construction of the local tax system, and defines the relevant concepts, and describes the necessity of the existence of local tax system; the third chapter analyzes the development and current situation of China’s local tax system, and summaries local tax system development achievements and problems, and makes an empirical analysis of the local tax system and economic development; the fourth chapter introduces the running situation of foreign local tax system, and analyzes its significance to China; the fifth chapter combines the circumstances of the reform of replacing business tax with value added tax, and puts forward realistic suggestions of construction of the local tax system in China.