The Study On The Improvement Of Local Tax System After Replacing Business Tax With Value Added Tax

The local tax system is a part of the taxation structure,which also play an important role in reflecting the operation of various local economic activities and meeting the needs of local government's fiscal expenditure.The general structure and basic conditions of China's current local tax system are gradually formed after the reform of the tax distribution system,and have played an important role in promoting the sustainable development of local economy and meeting the needs of local government expenditure.But since the reform of tax distribution system,the construction of local tax system in China has lagged behind for a long time,resulting in instability of local governments' financial resources.After the tax reform of replacing the business tax with a value-added tax,the business tax has been completely replaced by VAT,the local government's income is less than before,which causes the financial power and powers or authority of office do not match.Local governments can't give full play to their positive role in local economic development.The 19th National Congress of the Communist Party of China have made it clear that we should accelerate the establishment of a modern financial system,deepen the reform of tax system and establish the local tax system.At this stage,China is at the key moment of the three phase of superposition,and the economic development has entered a new normal state.Under the more and more complicated macro-economic environment,after the tax reform of replacing business tax with value added tax,the problems such as the decline of local government tax revenues,the reduction in tax collection and management,and the decline in efficiency of tax collection and administration have become increasingly prominent.It is more and more imminent to improve the system of local tax.By referring to the domestic and international research result about the local tax system,and combining the literature research method,the experience summary method and the qualitative and quantitative research methods,this paper systematically discusses the way of improving the local tax system after the tax reform of replacing business tax with value added tax.The article first gave a basic theoretical explanation of the concepts related to local taxes and local tax systems.On this basis,the article analyzes the status quo of local taxation system in China after the reform of "to replace business tax with value-added tax(VAT)" from the aspects of the distribution of local tax revenues,the allocation of local taxation legislative power,and the local tax collection and management system.And the article presents the main problems in the current local tax system,such as the absence of main taxes,poor collection of tax revenues,over-concentration of tax legislation,unscientific distribution of tax revenues,and confusion in tax collection and management,to specify the need to further improve the local tax system.Afterwards,the article introduced the basic operation of local taxation systems in the three representative countries of the United States,Japan,and Brazil and summed up the experiences that China can learn from taxation rights allocation,subject tax selection,and tax collection and management,trying to provide useful enlightenments for perfecting China's local tax system.Based on the above analysis,combined with the basic situation in China after replacing business tax with VAT,the article puts forward some policy recommendations and supporting measures to improve China's local tax system.