Economic Policy: "Change To Zero" After "Camp Changed To Increase"

The gradual withdrawal of business tax from the historical stage will make room for the reform of a series of new local taxes.

In 2013, Lou Jiwei, Minister of finance, visited Hebei and other six provinces.

Arrange Chr (34) to reconstruct related topics such as Chr (34) of the local tax system.

It is not common for the Minister of finance to arrange annual research topics, so these topics are seen as Lou Jiwei's way to advance the reform of fiscal and taxation system.

Reporters learned that

The report of the provincial finance department Chr (34) to construct the Chr (34) of the local tax system has been concluded. The idea of reconstructing the local tax system has basically taken shape at the Ministry of finance.

Six levels of advancement

According to Chr (34) building local tax system Chr (34) research group stakeholders, in the future Chr (34) camp to increase Chr (34) after completion, the reform of local tax system may include the following aspects.

The first is to set up the primary tax for local finance, that is, retail tax.

This reform also includes two levels: the first is the expansion of consumption tax.

At present, the scope of consumption tax collection in China is only a traditional goods item. Chr (34) 13th Five-Year, Chr (34), the scope of consumption tax will be covered by food products and means of production.

Two, the consumption tax is levied from the production link to the retail sector, and the consumption tax is renamed the retail tax.

During Chr (34) 13th Five-Year Chr (34), some industries such as tobacco, liquor, refined oil and automobiles will first explore the Levy of retail tax, and the vehicle purchase tax will be incorporated into the retail tax.

In other industries, the conversion of consumption tax to retail tax may not be realized until 2020.

Bai Jingming, deputy director of the Fiscal Science Research Institute of the Ministry of finance, believes that the retail tax or consumption tax imposed in the retail sector will absorb more tax base and easily widen the gap between the rich and the poor. Chr (34) therefore, the main categories of local taxes should be supported by other taxes.

Chr (34)

The two is to locate the important tax categories of the provincial level governments in the less developed areas.

In line with this important role, in addition to the reform of coal resources and iron ore and other minerals that have been pushed forward, the scope of resource tax collection will also be expanded. Chr (34) in 13th Five-Year Chr (34) may promote non mineral resources such as water, forest and grassland into the resource tax.

The three is the set up of the main tax categories at the municipal and county level, which will focus on the real estate industry.

The current taxes and fees are faced with mergers. In the future, they will mainly retain the real estate tax of the pfer link and the retained links.

The reform of real estate tax has always been the focus of attention from all walks of life, but the above people said that the Ministry of Finance realized that the promotion of real estate tax needs four problems to be solved, one is the reform of the household registration system, the two is the network of real estate information, the three is the guarantee of tax collection and management, and the four is to reduce the resistance of the public opinion.

Only for the real estate registration ordinance, the schedule that should be introduced at the end of June 2014 has not been completed on schedule, and the real estate information networking is a long way to go.

Chr (34) is the direction, but at present, it is far from mature as the main tax category of local tax, and it can only be arranged as a potential main tax category.

Chr (34) said the above.

Four, the reform of corporate income tax will be developed into a central tax by raising the share of central finance, but there will be a pitional period in the short term, which remains a shared tax between the central and local governments.

At present, the finance and taxation departments are cleaning up regional preferential tax policies nationwide. On the one hand, they are in line with the reform of the budget system, and on the other hand, they are also pave the way for the imminent advance of the enterprise income tax system.

The simplification of tax system as early as Chr (34) in 11th Five-Year Chr (34) has become an important part of tax reform. However, because of the chaos of tax revenue and other factors, the reform has not made substantial progress in the long term.

According to the current budget, the tax system simplification is expected to be realized in Chr (34) Chr (34) in 12th Five-Year.

In the future, enterprises can enjoy preferential tax incentives based on preferential industries. Additional benefits and capital gains will also be included in taxable income, so that the tax base of enterprises will be expanded.

At the same time, in order not to increase the burden on enterprises, the finance and taxation departments will not only reduce the tax rate appropriately, but also the non juridical partnership enterprises and individual proprietorship enterprises will be removed from the tax category of corporate income tax and the individual income tax will be changed.

Five, the sharing mechanism of personal income tax between central and local governments will change. The current proportion will be divided into proportions, and the central government will share the approved tax base on personal income tax.

For a long time, because of the small volume of personal tax, many people in the tax and taxation industry do not value this tax.

With the increase of residents' income and the strengthening of tax collection and management means, for example, financial institutions all over the country should establish a unified information platform for taxpayers' accounts. The volume and proportion of personal income tax will continue to increase in the future. chr (34) will become an important tax source shared by the central and local governments.

Chr (34)

The six is to levy or adjust a series of special taxes. They will become supplementary taxes for local fiscal and tax revenues, such as levying environmental taxes, and incorporating Educational Surcharges, education funds and other items into the education tax.

Under the above reform ideas, the main categories of taxes that the Ministry of Finance plans for the future local taxes will include the retail tax, resource tax, deed tax, real estate tax of the exclusive local finance, and the corporate income tax and personal income tax shared with the central government.

The reform progress of Chr (34) real estate tax, resource tax and even enterprise income tax is not entirely decided by the finance and taxation department. The personal tax reform requires long-term preparation of the means of collection and management and the atmosphere of public opinion, otherwise it will not alleviate the anxiety of the local government.

Chr (34) Zhang Bin, director of the Tax Research Office of the finance and Trade Institute of the Chinese Academy of social sciences.

Under such circumstances, retail tax reform has become an important way to ease local fiscal tightening in the process of Chr (34) to Chr (34).

But the design of retail tax reform needs to consider multiple factors.

Liu Shangxi, director of the Fiscal Science Research Institute of the Ministry of finance, told the financial weekly magazine that fiscal and taxation policies should guide the pformation of economic development mode and expand consumption.

Therefore, China's local taxes should be mainly based on consumption rather than production, but at present, the tax base of business tax and value-added tax falls on the production link.

How to make local tax not only meet local needs, but also correctly guide the behavior direction of local governments, is an important problem faced by Chr (34) in the practice of Chr (34).

According to the current thinking, the reform of consumption tax and retail tax tries to promote the balance between the central finance, the local finance and the three enterprises, and carefully move forward, trying to balance the interests of the three parties.

The financial and national weekly reporter understands that the entry point of the retail tax is located in the current consumption tax, which is suitable for local government management, suitable for wholesale and retail sales of tobacco, liquor, refined oil, cars, gold and silver jewelry and diamonds and other taxable items, which can cover more than 95% of the domestic sales tax.

Based on domestic consumption data in 2012, if the vehicle purchase tax is incorporated into the vehicle purchase tax, the consumption tax will become a retail tax, which will increase the local government revenue by about 970 billion yuan.

At present, the Chr (34) camp has been replaced by Chr (34), and the sales tax is still the main tax category of local taxes.

Relevant group members of the research group said that retail tax reform will take pitional measures. One of the pitional measures of Chr (34) is to hand over the vehicle purchase tax to the local government in the pitional period.

Chr (34)

In addition, in the process of changing Chr (34) to Chr (34), according to the financial resources of local governments, it is possible to slow down the progress of enterprise income tax reform and maintain the current tax system basically unchanged.

After the Chr (34) camp is changed to Chr (34), the existing tax items of consumption tax will be changed to retail tax and completely replace the main tax position of business tax.