Research On The Selection Of Main Local Tax With The Context Of Replacing Business Tax With V.A.T In China

From the report of the 18th CCP,"To optimize the local tax system,and create a tax system of structural optimization and social equity",to the 3rd Plenary Session of the 18th Central Committee of the Communist Party of China,"Deepening and improving the reform of the tax system," and finally to the 4th session of the 12th NPC session,"from May 1,2016,make the reform of replacing business tax with value added tax nationwide." So the fiscal reform is the highlight of Chinese economic reform,and in which the local tax system reform plays an important role.Followed with the reform of replacing Business tax with Value added tax,the original local tax system will be broken,the income scale and the pattern of the local tax system will be changed.In 2011,The income scale of business tax is 1.350444 trillion rmb,which accounts for 32.85 percent of total local tax revenue.But in 2014,The income scale of business tax is 1.771279 trillion rmb,which accounts for 29.95 percent of total local tax revenue.The Business tax has always been the main tax of the local tax system,which provides the main source of local fiscal revenue.Under the context of replacing business tax with VAT,the main tax disappears,the local financial revenue declines.Analyzing the difficulties and challenges which will be brought by the new round of tax reform thoroughly.,and completing the reconstruction of the local system with layout and rearrange the relationship between taxes,ensure a stable local economy and a adequate financial income,which will have important value in both theoretical and practical application field.This article sums up the relevant conclusions thorough the discussion to the following five parts of the local main tax selection.In the first part,based on the domestic and international research on the main tax selection between the local taxes,this article summarizes four cases through the method of consulting literature materials:select the Consumption tax,adjust the sharing proportion of VAT between central and local,adjust the sharing proportion of Income tax between central and local,select the Property tax like the Real estate tax and resource tax.In the second part,this article defines the relevant concepts such as the local tax and the local tax system,describes the necessity of the existence of local tax system,analyzes the current situation of China's local tax system at the scale and structure,summaries the development of the reform of replacing business tax with VAT,and introduces the effect to the local tax system brought by this fiscal and taxation reform.The third part makes a comprehensive and systematic discussion on the main tax selection through normative analysis and empirical analysis.The fourth part discusses the running situation of local tax system and its main tax selection in decentralized country or centralized country,and analyzes its significance to China.The last part uses all of the above discussion and analysis,provides the Short-term solution and long-term solutions to the main tax selection,it combines the guiding principle,the path,the reform of relevant taxes and the supporting measures and so on.