How Big Is The Impact Of The Consumption Tax Reform Plan?

Finance and taxation reform, as a fundamental reform involving a wide range, has been mentioned many times by senior officials.

According to the official comment, the division of responsibilities between the central and local governments is still in the "research", slightly slower than expected.

Recently, some experts have pointed out that as the biggest move of tax reform in 2016, "the camp changed to increase", the proportion of VAT allocation was adjusted to 55. After that, the proportion of VAT sharing among different provinces was very different. The pition plan was divided into "one size fits all" according to the VAT 55, which had different effects on the provinces.

In addition, the "value-added tax reduction" mode will make local governments tend to attract more "sales" enterprises, such as pipeline pportation, electricity, aviation and other industries, and inter provincial tax distribution conflicts will intensify.

After the business tax withdraws, the establishment of local main tax categories is also urgent.

The 21 media reporter learned exclusively that the consumption tax reform plan is expected to be accelerated, and it can slightly enrich local revenue.

Small tax items such as solid wood flooring, jewellery and jewellery are expected to be adjusted to local revenue in the consumption tax reform. The tax rate also allows local governments to decide independently within a certain scope. Alcohol consumption tax is also expected to be partially returned to the local area.

The specific plan remains to be officially announced.

Finance and taxation system to 21 media reporters said that consumption tax revenue mainly concentrated in the four categories of tobacco and oil tankers, of which tobacco contributed about 50% of consumption tax.

Small taxes are allocated to places, which have limited effect on increasing local revenue.

In May 20th, at the forum of "local finance and China's economic development", Liu Yi, deputy director of the China Public Policy Research Center of Peking University, shared her latest research results.

Liu Yi estimated the actual value added tax share of some provinces before the camp changed to increase, and found that the sharing rates of provinces were very different.

"The actual share rate is only 13.5% of Tianjin, while Jiangxi achieves 34.7%, and the growth mode of each province is different. This province is pursuing more real estate industries, and the province is pursuing more manufacturing industries, resulting in different patterns of provinces."

In April 30th, the State Council announced the pition plan of the central government's income distribution after the camp changed to increase. The vat of all industries was shared by the central and local governments, and the local government shared 50% of the value added tax according to the tax revenue. Based on 2014, the central government allocated revenue to the local government through tax return, so as to ensure that the local financial resources remained unchanged.

The scheme is tentatively scheduled for 2-3 years.

Liu Yi pointed out that the income pattern of different provinces is different, and the pitional plan determines that the proportion of local share is 50%, which will undoubtedly have different effects on the provinces.

Although the balance is based on 2014, the balance must be temporary.

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When the local share ratio was 25%, the provinces were fighting for tax payment.

Now the VAT share ratio has increased to 50%, which is a more powerful incentive than before.

Where the value-added tax is, where it will go, it will become more acute.

Everyone wants to sell it to me, and if I do not go there, the local government will attract more companies that are good for generating income and restrict those enterprises that reduce taxes.

Liu Yi, for example, said that tax competition in some industries would be more severe, such as pipeline pportation, electricity and aviation.

For example, airline companies usually have their deductions at headquarters, but the selling of air tickets is everywhere. How to match the sales and entries, how this will affect the competition of local governments, need further study.

As a major tax category, business tax has been withdrawn, and new local main tax categories are still being established.

The above-mentioned western provincial finance department official said that after the business tax withdrew, there was no main tax category.

At present, it may be the adjustment of consumption tax. This content is being rushed out of Taichung. The consumption tax is totally central tax. Now some small tax items may be turned into local revenue, such as solid wood flooring, jade jewelry, etc., liquor may also be partially returned to the local area, but the income tax of cigarette, oil, car and so on will still go to the central government.

According to the 2016 budget report considered by the National People's Congress, "adjusting the scope, links and tax rates of consumption tax" belongs to the "fiscal reform in 2016" to speed up the financial system.

One of them.

The head of the financial department of the eastern province said to the 21 media reporters that the consumption tax reform is still at the central level and the local fiscal revenue is limited.

On the basis of previous discussions, liquor is expected to impose a consumption tax in the retail sector, which may come to the place.

The introduction of the consumption tax matching allocation has been discussed in the industry before.

Xu Shanda, former deputy director general of the State Administration of Taxation, pointed out that since the tax increase will bring about a tax reduction of 900 billion yuan to 1 trillion, the central government will generally subsidize the local governments in accordance with the usual practice of tax reform, so as to enhance the enthusiasm of reform.

The size of the consumer tax revenue is roughly more than 1 trillion, similar to the size of the business tax reduction.

Many experts have suggested that the consumption tax can be changed to a retail link and classified as local income.

However, Xu Shanda also said that such a turn in the consumption tax also faces many problems.

The consumption tax was originally levied in the production process, and the management was relatively easy.

The introduction of the consumption tax reform and the reform of the camp will aggravate the financial management confusion.

According to the revised consumption tax in May 2015, it now includes a total of 13 items of taxes, including cigarettes, alcohol, cosmetics, precious jewelry and jewelry, jade, firecrackers, fireworks, finished products, motorcycles, cars, golf balls and ball sets, high-end watches, yachts, wooden disposable chopsticks, solid wood flooring, batteries and coatings.

According to the Ministry of finance data, the import link was not included in 2015.

The scale of domestic consumption tax has reached 1 trillion and 50 billion yuan, an increase of 18.4% over the same period last year, mainly due to the increase of refined oil and cigarette consumption tax.

Zhang Bin, director of the Tax Research Office of the Institute of Finance and economics of the Academy of Social Sciences, told the 21 media reporters that the consumption tax revenue mainly focused on four main categories: tobacco, alcohol, oil and cars.

In 2014, the four categories accounted for more than 90% of the consumption tax, and tobacco accounted for about 50% of the total income.

In 2015, the consumption tax of cigarette wholesale link was raised, and the proportion of the four major categories could be further improved.

Zhang Bin also said that the small tax items under consumption tax should be adjusted to local income, which would have limited effect on local fiscal revenue growth.

A responsible official of the Finance Department of a western province told the 21 media reporters that after the introduction of the 55 value-added tax pition plan, the local government will certainly adjust investment behavior slightly and attract more industries that are favorable for tax revenue creation.

There are also local financial systems who told the 21 media reporters that the adjustment of local government behavior has not been so fast. At present, the camp reform and the resource tax reform are still in full swing. Industrial cultivation takes time, and the pition of the program is two or three years.

"However, the leaders of the bureau did let us pay attention to the impact of the increase in camp on local income and pay attention to which industries could generate more taxes."

At the meeting in May 20th, Qiu Xiaoxiong, former deputy director general of the State Administration of Taxation, responded to 21 media reporters that after the camp changed to increase, what kind of changes will happen to local government behavior and need further observation.

55 is divided into a pitional program, property tax, personal tax reform is not yet in place. After the tax reform is in place, the central authorities will further adjust their powers and incomes.