The Choice Of Main Tax In Local Tax System Under The Background Of The Business Tax To VAT Transformation

In 1994, our country reformed the management system of tax distribution and established the basic structure of fiscal allocation relationship between governments at all levels. These measures ensure central government revenue effectively and enhance the ability of central macro-control. They also standardize the relationship of tax distribution between different local governments and build local tax preliminary system. However, with the rapid development of society and economy, there are many problems appearing. For example, our country is lack of the main tax category of local tax, the government has the low level of legislation, income scale is small and local tax system could not adapt to develop economic society. These problems restrict to perform local government functions and have effects on further development of local economic society. At present, local tax system is consists of scattered tax fund and tax categories that are low stability and slow growing. With the improvement of program to replace the business tax with a value-added tax, tax revenue from business tax that is the main source of local revenue decreases. It leads to decrease available financial resource of local government and has negative effects on the development of local economic society. On this background, it is more significant to prefect local tax system and the key point is the choice of tax categories in the local tax system. In addition, because China is a large country, areas have different levels of economic development and natural resources. It makes difference the structure of local tax in different places, so when main tax categories of local tax are chose, we should be consider the condition of the overall situation and combine some factors about the level of economic development and natural resources, we should targeted to choose the local main tax categories.During the study, this paper mainly uses comparative analysis, qualitative analysis, quantitative analysis and other research methods. At first according to fiscal decentralization thought, this paper analyses the necessity of the local taxes and defines the concept of local taxes and main tax categories of local taxes. It also analyzes the choice standard of main tax categories of local taxes. Then this paper selects several representative countries and analyzes the situation about the division of authority and financial options. It also summarizes the practical experience of countries. On the basis of the above theoretical analysis, this paper analyzes our local taxes system and operation of main tax categories of local tax. Contrast with points that the programs to replace the business tax with a value-added tax impact on the local income and increases the local fiscal risks in local government. Then according to the characteristics of various types of taxes and the actual situation in our country, this paper analyses to measure the main tax categories as less developed region feasibility. Finally on the basis of the research and summary, this paper come up with the subject of local tax establish foundation and points to improve and perfect the system of tax laws. It also make clear relationship between central and local and define the responsibility of local government. This paper adjusts and optimizes the allocation of tax revenue between the central government and local government, and appropriates to local government taxation. On the basis of real estate tax as a less developed region local duty, resources are considered as supplement. In addition, to simplify the government level, perfects the transfer payment system, establishes real estate registration assessment mechanism and other measures, in order to ensure steady progress in the reform of local tax system.