Analysis Of The Impact Of The Backward Collection Of Refined Oil Excise Tax On Local Revenue

On September 26,2019,the State Council issued the "Promotion Plan for Adjusting the Division of Revenue between the Central and Local Governments after Implementing Larger Tax Cuts and Fees".The "Plan" proposed: "Part of the current excise tax items levied in the production(import)link Gradually move to the wholesale or retail link collection to expand local sources of income and guide local governments to improve the consumption environment." "The plan" expounds the reform trend of excise tax,and the condition of the collection is nearly mature.The "Fourteenth Five-Year Plan for National Economic and Social Development of the People’s Republic of China and the Outline of Long-Term Goals for 2035" issued on March 13,2021 pointed out that during the "14th Five-Year Plan" period,the scope and tax rate of excise tax should be adjusted and optimized,and the collection should be promoted.Move the link back and steadily underline the place.In this paper,based on the analysis of the historical changes in the production and consumption of refined oil products in each province,the comparison of the inter-provincial production distribution of refined oil products with the inter-provincial consumption distribution,and the reference to the revenue that can be collected by each province when the current refined oil excise tax is levied at the production stage,it is found that the current interprovincial distribution of refined oil excise tax revenue is almost consistent with the interprovincial distribution of the production of refined oil products,and it can be presumed that the collection stage of refined oil excise tax after the backward shift of the excise tax on refined oil products,the inter-provincial distribution of the excise tax revenue of each province will be basically consistent with the inter-provincial distribution of the consumption of refined oil products.Since the in-price tax attribute of excise tax affects the tax bases of VAT,urban maintenance and construction tax,education surcharge and local education surcharge,and enterprise income tax,the impact of the shift in the collection chain of refined oil excise tax on the inter-provincial distribution of refined oil excise tax revenue will be more diverse.Combining the theoretical basis and practical considerations on the selection of the levying link of refined oil excise tax,this paper discusses the redistribution of financial resources on the local fiscal revenue under the joint influence of multiple tax types,and comes up with a more suitable levying link shifting scheme by combining the effect of regional financial balance and the degree of tax source deviation.Guided by this idea,this paper simulates different scenarios of shifting the taxable consumer oil products to the retail segment according to various combinations of revenue attribution and taxation methods,and measures the impact of shifting the taxation segment on the government’s financial resources distribution pattern.It finds that shifting the collection chain of consumer products and decentralizing the revenue to the local level significantly improves the overall tax revenue of local governments and promotes a more balanced inter-provincial distribution of refined oil excise tax revenue,with central and western provinces gaining more revenue through the shifting reform and eastern provinces experiencing a slight contraction in revenue,which to a certain extent promotes inter-provincial fiscal equity.The backward shift of tax collection also reduces the inter-provincial deviation of tax revenue and tax sources.After simulations,this paper concludes that the simultaneous shifting of the excise tax on refined oil products and the complete devolution of revenues to local governments can have an optimal impact on local fiscal revenues,and suggests shifting the excise tax on refined oil products to the retail segment and devolving revenues to local governments based on reasonable reform policies.This paper also puts forward relevant policy suggestions for the reform measures and local financial construction of the delayed collection of excise tax on refined oil products.