Research On The Reform Of The Local Tax System In China After The Policy Of Totally Replacing Business Tax With VAT

Replacing business tax with value-added tax(VAT)is unique and meaningful in the history of the development of Chinese tax system.The policy of replacing business tax with VAT began on January 1,2012 in Shanghai.During the Report on the Work of the Government in 2016,Premier Li clearly put forward that the policy of replacing business tax with VAT will be totally implemented in May 1,2016.Nowadays,the business tax has completely retired from the stage of history,and the local tax system has also lost the main tax category because of the totally replacing business tax with VAT.In addition,the construction of local tax system has lagged behind the development of the tax-sharing fiscal system since tax-sharing system was established in 1994.Although the reform of the local tax system faces the challenge,the reform is imperative.The reports of the 19 th National Congress of the Communist Party of China clearly put forward that “establishing and improving the local tax system is urgen”.It is of great significance for China’s local tax system to reform.Based on the existing research results,this paper mainly uses comparative analysis,theoretical analysis and data analysis methods to provide policy recommendations for how to ensure the source of local tax revenue and establish a sustainable tax system suitable for the background of Totally replacing business tax with VAT.This article includes five parts.In the first chapter,the introduction mainly introduces the background and significance of the research,and the relevant research results at home and abroad.The second chapter focuses on the analysis of the related theories of local tax system,so as to pave the way for the analysis of the reform and development of the later local tax system.The third chapter focuses on the local tax structure,tax revenue and local tax collection and management system to introduce the status of the local tax system in China.The fourth chapter mainly analyzes the existing problems of the current local tax system.In view of the existing problems ofthe current local tax system in China,the fifth chapter puts forward and analyzes the feasibility scheme,and gives the policy suggestions at the end.