Fiscal Reform: Consumption Tax Or Central Location Sharing Tax

Media reporters have learned from many sources that as one of the important contents of tax reform in fiscal reform, the consumption tax will be changed to central or local tax sharing in the future.

Among them, the tax revenue allocated to the central revenue is still levied by the state tax department, while the local income tax is replaced by the local tax department.

Experts believe that the consumption tax will be changed from central tax to shared tax, which can be used as one of the main local taxes, and to some extent, improve the autonomy of Local Taxation.

The local tax items are collected by the local tax authorities. On the one hand, they are conducive to strengthening the collection and management. On the other hand, they are conducive to enhancing the attention of the government of the consumption area to improving the local consumption environment and improving the local consumption ability.

The reporter understands that the above reform direction will be carried out after the complete pformation of the camp and the reasonable adjustment of the central and local income division.

At present, the domestic consumption tax in China belongs to the central tax and is levied by the state tax department.

The consumption tax is a general term for all kinds of taxes that are taken as the object of taxation.

The consumption tax is a typical indirect tax. The internal tax is applied and the tax is ultimately borne by consumers.

The scope of the current consumption tax mainly includes ten items of taxes, such as tobacco, wine, firecrackers, fireworks, cosmetics, refined oil and so on.

With more and more consumption tax levied to retail and wholesale links, more commercial enterprises and retail enterprises will become taxpayers of consumption tax.

"The number of taxpayers of consumption tax has increased greatly, which means that the collection and management is more difficult. The taxation of retail links requires the collection and management authorities to master the information of retail enterprises, and the local tax authorities are more qualified and able to monitor local enterprises than the IRS."

Shi Zhengwen said.

In addition, considering the allocation of tax and land tax collection tasks, experts believe that even if the camp is changed to increase, the Local Taxation Bureau will still exist for a long time. It is necessary to reasonably divide the collection and management authority, and divide some tax items to be collected by the local tax department.

Referring to the data of national fiscal revenue and expenditure in 2015, the reporter found that in 2015, China's domestic consumption tax was 10542 billion yuan, second only to value added tax, enterprise income tax and business tax, which is the fourth largest tax category in China.

Many experts believe that the reform of consumption tax plays an important role in the reform of the central and local governments in the reform of fiscal and taxation systems.

After the camp is changed to increase, the main tax categories of the local areas are missing. Although the central and local proportions of VAT can be compensated by adjusting the value added tax, the real protection of local taxes requires that there are main taxes in the area and tax can be obtained directly.

Shi Zhengwen, a professor at China University of Political Science and Law, told reporters in a media interview that the consumption tax now has more than ten tax items, and that more tax items may be added in the future, and the scale is expected to increase.

Consumption tax should become one of the important sources of local tax revenue, and of course, it should not become a local tax.

It is a manifestation of the autonomy of Local Taxation to divide some tax items into local taxes and collect taxes from local tax departments.

As to what specific tax items are placed, there is no conclusion.

Shi Zhengwen said: "cigarettes, alcohol, refined oil and vehicles account for most of the consumption tax revenue. I believe that the collection of cigarettes in the wholesale sector may be extended in the future, which can be levied by the Local Taxation Bureau.

Cosmetics, jewelry, jade, firecrackers and fireworks can be used as local tax items.

Refined oil may also be changed to local taxes. "

Liu Shangxi, director of the Ministry of finance, said before that

The overall plan is that the basic principles of the consumption tax reform are to integrate the "three high", that is, high energy consumption, high pollution and high-end consumer goods, into the scope of consumption tax collection.

The reform of consumption tax is first of all to expand, and the general goal is to play a moderating role of consumption tax.

The next step may be to adjust the consumptive tax collection link. Now it is mainly levied in the production link. After that, it may be levied in the sales link, and the tax rate may also be adjusted appropriately.

From the perspective of changing the governance capability of the government, it is of positive significance to place some of the consumption tax items in the local context.

Shi Zhengwen said that local governments mainly rely on attracting foreign investment and expanding investment to get tax sources.

The main tax structure brings about.

In the future, China's pformation of the mode of economic development depends more on expanding effective consumption.

Under such circumstances, the government should raise the tax revenue mainly through investing in factories, but by improving the level of local public services, thereby improving the consumption environment and improving consumption ability.

There are also some insiders who do not want to be named.

Central and local sharing taxes will face many operational difficulties.

"If we re adjust the proportion of central and local value-added tax, we can supplement the problem of insufficient local tax sources. Maybe consumption tax will not become a share tax, nor should it be collected in the retail sector. After all, the difficulty of collecting taxes from production is much smaller."

The source said, "the four tax items of tobacco and alcohol tankers account for more than 90% of the consumption tax, and tobacco accounts for more than half of the total consumption tax.

It is also an important issue to decide which specific tax items should be allocated to the local government and which tax items should be returned to the central government.