An Important Part Of The New Round Of Fiscal Reform

Here world clothing shoes The Xiaobian of the hat net is a new round of fiscal reform and reinventing the central government's power to become an important part of the reform.

The new round of fiscal and taxation reform will be the focus of the next stage of reform.

Compared with the 1994 tax sharing reform, the general plan for deepening fiscal and taxation reform passed by the Politburo of the Central Committee of the CPC at the end of June, while guaranteeing the central revenue, elaborated on the relationship between the central authorities and the local authorities in matters of power, finance and expenditure, and became an important direction of public opinion.

Like the tax sharing system reform, the modern financial system is also faced with the problem of decentralization between the central and local governments. How to deal with the relationship between them is an important part of the success or failure of the reform.

Finance and taxation circles generally believe that restructuring the central and local proportions will become a direction of reform. It is learnt that at present, the provinces are calculating the proportion of tax revenue, aiming to regulate the new financial relationship between the central and the central government through this calculation.

Reconstruction of the relationship between central and local governments

"In fact, the difficulty of reform is mainly that the current tax reform has not been completed, especially the" camp to increase "reform will have a direct impact on the central and local sub sectors. It is difficult to accurately calculate the new proportion between central and local governments before they are completed. Shi Zhengwen, director of the tax and law research center of China University of Political Science and Law, admitted.

In his view, the focus of fiscal reform is to adjust the financial relationship between the central and local governments. "It has been estimated that the proportion of the central and local 75:25 of VAT will be achieved after the completion of the camp reform. The proportion of 60:40 or 50:50 will probably be achieved, but it will still depend on the effect of" camp to increase ".

It is reported that in 2012, China's pilot "camp changed to increase" in Shanghai, and then spread across the country, according to the "12th Five-Year" plan, the camp will be completed by the end of next year.

It is noteworthy that, with the promotion of the "camp to increase" pilot, changes in central and local revenue, and how to allocate local fiscal revenue has become an urgent problem at present.

"Although the tax reduced after the" camp changed to increase "will still be returned to the local government. From the aggregate perspective, the local government has not reduced the revenue since the tax system changes, but with the deepening of the reform, the central government's return will not last. A prefecture level city in the East tax authority Staff said.

Regarding this, Zhang Deyong, a financial and Strategic Research Institute of the Chinese Academy of Social Sciences, once said that adjusting the financial relationship between the central and local governments is both a key and a difficult point, and the difficulty lies in the redistribution of interest patterns. In the future, we should reform from two aspects so as to straighten out the division of income between the central and local governments, that is, the central government should collect part of the expenditure responsibility, lighten the burden of the local government, and increase the financial resources to the local areas.

This coincides with the current reform path.

In the third Plenary Session of the 18th CPC Central Committee, it was pointed out clearly that the existing central and local financial structure is generally stable. Combined with the tax system reform, we should consider the nature of tax categories and further rationalize the division of income between the central and local governments.

The general plan for deepening fiscal and taxation reform issued in June 30th also explicitly calls for adjusting the financial relationship between the central and local governments. Under the premise of maintaining the general stability of the central and local income pattern, we should further straighten out the division of income between the central and local governments, rationally divide the responsibilities and responsibilities between governments, and promote the unification of power and responsibility, work and spending, and establish a system that suits the responsibilities and responsibilities of expenditures.

Regarding this, Jia Kang, director of the Finance Ministry of the Ministry of finance, believes that giving the local government certain tax administration authority is the key to handling the relationship between central and local governments. In his view, the tax sharing proportion should be scientifically arranged, and tax sharing should be determined according to the objective needs of the responsibilities and the responsibilities of people's livelihood and the relevance of social public management.

Against this background, the new round of fiscal and taxation reform is expected to basically complete the key tasks and tasks in 2016. What challenges will it have?

Zhang Deyong believes that whether or not to complete the new round of tax reform on schedule is mainly determined by the executive power of the government. The completion of the tax reform in 1994 depends mainly on the central government's firm push.

"Withdrawal" of tax sharing system

In fact, as an important turning point in the reform of China's fiscal system, the tax sharing system has been described as "a classic work in the course of China's reform". It not only ended the swing of China's fiscal system before 1994, but also ensured the stability of the central finance.

Since 1994, the framework and rules of the tax sharing system have been extended for 20 years. The reform of tax sharing system in 1994 carried out a re division of powers and financial rights between the central government and local governments.

According to the reform plan of tax sharing system, the central government transforms the tax system into a productive tax system. By collecting vat, 75% of the value-added tax will go to the central government and the local government will get 25% of the revenue. The central government is responsible for budgetary expenditure on defense, diplomacy, transfer payments and strategic development. Local governments are responsible for providing general education, medical services and other public services.

In the past 20 years, the reform of the tax sharing system has raised the central government revenue to more than 50%, but the expenditure is less than 20%. The central government has strong control over the local government through the transfer payment and tax return.

"Concentrate on doing things well." It is an important manifestation of the tax sharing system reform.

People in finance and taxation generally believe that through the framework of tax sharing reform and the introduction of a series of reform measures, a series of problems have been solved, such as triangle debts of state-owned enterprises and bankruptcy of banks.

Zhao Yunqi, a researcher at the Ministry of Finance and finance, wrote that the 1994 tax sharing reform is the most comprehensive, largest and broadest reform, and it is a major tax reform since the founding of new China. In terms of income distribution, the distribution relationship has been basically straightened out, and the proportion of tax revenue to GDP has been reversed.

However, with the deepening of the reform, the tax sharing system has obvious negative effects, especially so far, the fiscal management system under the provincial tax sharing system is not perfect enough, which results in the decentralization of the financial management system which divides the fiscal revenue and expenditure according to the powers of the local governments at all levels.

Jia Kang thought that the problems of county and township finance, local governments' financial rights and powers, land finance and "running money" after the reform of the tax sharing system were precisely caused by the failure of the tax sharing system to be put in place. Under this background, it is particularly important to change the power relations between central and local governments through the reform of fiscal and taxation systems.

In the future, flat financial relations should be implemented, including fiscal treatment in the three level framework of the central, provincial and county levels. tax revenue Deepening reform will be a direction of the modern fiscal system to improve the tax sharing system.

In response to this, Lou Jiwei, Minister of finance, also mentioned that the financial reform should adjust the responsibility of the central government and local governments and appropriately increase the central government's expenditure responsibilities.