Research On The Reform Of The Backward Movement Of Tobacco Consumption Tax Collection And Incremental Decentralization

The promulgation of Guo Fa [2019] No.21 document kicked off the prelude to the consumption tax reform,with the method of moving the collection link backward and the incremental income downgrading to the local level,and the short-term goal of its reform is to promote local governments to implement tax reductions and fee reductions,alleviate fiscal operation difficulties,and cultivate and expand local tax sources.The long-term goal is to steadily promote the reform of the local tax system and adjust and improve the local tax system.China is a big country in tobacco production and consumption,in 2021 tobacco tax profits exceeded 1.3 trillion yuan,the output exceeded 2.4 trillion pieces,and its consumption tax accounted for more than 50% of the total consumption tax,which is the largest item in the consumption tax.Therefore,it is of great significance to study the backward movement and incremental downward division of tobacco consumption tax collection alone.Firstly,the backward movement of the tobacco consumption taxation link will have an income effect and a substitution effect on consumers,and the difference in the collection link is also reflected in the difference between the principle of the place of production and the principle of the place of consumption.Tobacco excise tax reform is faced with the choice of Pareto improvement or Caldo improvement,as well as a specific division of fiscal power and power.By expounding the above theories,it provides theoretical support for subsequent analysis.Secondly,the calculation method of the backward movement of the tobacco consumption tax collection link and pass the incremental revenues to the local governments.are established and numerical simulation analysis is carried out.First,by combing through the existing tobacco excise tax calculation methods and proposing more accurate measurement methods.The calculation results show that on the one hand,the backward shift of the collection link will expand the tax base and increase the total amount of tax revenue,on the other hand,it will cause the problem of reducing the income of some large production provinces and intensifying local protection,and at the same time,the backward shift of the collection link also poses a greater challenge to the current tax collection and management control.Second,in the collection link backward at the same time in accordance with the national document on the tobacco consumption tax increment downward calculation,because the document failed to clarify the specific plan of the downgrade,this paper draws on China’s shared tax in accordance with the proportional sharing of the way to propose to the 2015 base period of 80%and 50% to the central government,the rest of the part belongs to the local;learn from the factor method in the transfer payment,the use of entropy method to calculate the comprehensive index of tobacco development in a certain region,with 2015 as the base period,the larger the index,the more tobacco consumption tax shared by the locality.Through numerical simulation,it is found that the above scheme can narrow the income gap between regions to a certain extent,alleviate the contradiction between fiscal revenue and expenditure caused by local tax reduction and fee reduction,not only can make up for the damage to the interests of some provinces caused by the backward shift of the collection link,but also help local cultivation of stable tax sources,but also easily lead to the contradiction between tobacco control and increasing local fiscal revenue.Finally,this article makes the following policy recommendations.First,combined with the impact of the current large-scale tax reduction and fee reduction,demand contraction,epidemic impact and other factors in China,it is proposed to accelerate the cultivation of tobacco consumption tax as a source of local tax revenue,improve the local tax system,and establish a sound income sharing mechanism at the same time,taking into account large production provinces and large consumption provinces.The second is to improve the ability of tax collection and management,enhance the ability of information collection and management,and strengthen the monitoring of tobacco tax sources.The fourth is to improve the tobacco tax system,further exert its regulatory functions,and include e-cigarettes in the scope of taxation to increase fiscal revenue.