Traffic Tax Reformation Model Research In China

Since reformation and opening, the road construction makes great progress in our country, which is heavily contributed to fund collected from each provincial government. The amount of fund provided by provincial government is occupied up to 40 percent in all needed fund, which mainly consists of road fees and fees affiliated to passengers and goods transportation. With development of society and economy, the weakness in current system to fund road development becomes more and more obviously in aspects of policies as well as conception. Among mang alternatives to current system, implementation of fuel tax and abolishing all current traffic fees is the original design, but which lacks operational condition. The author thinks coverting traffic fee to tax must obey the basic tax principles, which guides the research to one scheme applicable in China.The chapter one reviews the research background, analyzing problems existing in current system. We find there is no systematic theory in China. Based on research results in other developed countries, we think our schema should focus on the cost to be compensated and how to allocate among taxpayer.The chapter two analyzes traffic tax theory, which makes a point that public income as well as sustainable development in traffic department. Through case study, author also analyzes the way to collect traffic tax. Based on results of statistical analysis, author thinks the traffic tax model should consist of fuel tax and weight-distance tax.The chapter three details the theoretical model. Firstly, it clearly defines tax elements respectively, then proposes the method to calculate tax rate. For fuel tax, there is only one rate, but for weight-distance tax, there is a tax structure underlying compensation index according to different vehicle model.The chapter four calculates those parameters according to above traffic tax model with the data mainly provided by the Traffic Tax Bureau, the Transportation Department of Sichuan Province. The research finds that designed fuel tax rate is applicable in current condition and that designed weight-distance tax rate features nonlinear characteristic to different vehicle types.The chapter five makes some research about the traffic tax reformation policies in our country. It pays attention to how to implement Chinese traffic tax reformation including setting purpose, deciding tax form, establishing managerial organization and monitoring system.The chapter six makes conclusions about whole paper as the last part. It concludes the innovational contributions in this research in aspects of theory and practice, certainly also includes deficiencies. For furthermore research, it points out there are two directions worth deep research. One is to research traffic tax economy theoretical foundation and the other is to promote decision making science in government.