A Feasibility Study On Taking Retail Excise Tax As Main Subnational Taxation Under Reform Perspective

Since the reform of the tax system in 1994,the debate on the establishment of subnational tax has continued.After the replacement of business tax by value added tax,the lack of subnational subject tax is a consensus.However,in the choice of subnational subject tax,scholars have their own words.Many scholars propose the excise tax as the "business tax" substitute,while some scholars hold the opposite view.Basing on the previous studies and combining with the theory of the classic tax allocation and the current situation of China’s tax system,this paper combs the basic principles of the establishment of subnational tax in China under the current situation,and then analyzes the feasibility of the excise tax as the subnational subject tax from theoretical point of view.This paper analyzes the realistic consideration of the distribution of excise tax in different countries and regions,and provides reference for China ’s excise tax collection and income attribution.Basing on the consideration of residents’ consumption preferences and consumption ability of major consumer goods,this paper analyzes the income scale,distribution difference and economic effect of the excise tax in the existing system and the retail part,and further analyzes the feasibility of the excise tax as the subnational subject tax from the quantitative point of view.Conclusion: Taking the retail part of the excise tax into the subnational government is in line with the principle of subnational tax and international practice,and can increase the local government accountability,bring considerable revenue,reduce the local government’s financial pressure and achieve the tax function of consumption tax;Reality,the consumption tax reform cannot be completed overnight,and some tax items collection are only suitable for production.Therefore,from long-term,taking the retail part of the excise tax as a subnational subject tax is feasible,but that of short-term is not feasible.Innovation: First,this paper from a more comprehensive perspective researches on the feasibility of taking retail excise tax into subnational taxation.It covers the theoretical analysis of the excise tax from the principle of subnational taxation,the analysis of the excise tax collection and the attribution of income from the international comparison,and the quantitative analysis of the consumption tax income from different aspects.Second,this paper measures the amount of excise tax form different tax items,different links,and different regions,which not only completes the calculation of the amount of excise tax in different sectors,but also analyzes the feasibility from the scale,the contribution of subnational government finance and regional distribution.