On The Perfection Of The Legal System Of Consumption Tax In China

Relative normative consumption tax of China was set up in tax reform of 1994. Since it was put into force, it has played a positive role in regulating consumption structure, controlling quick consumption, leading the correct consumption, and increasing financial revenue, etc., and become an important means of national macro-regulation. Then, from May 1, 2009, Ministry of Finance has issued documents again to adjust the policy of cigarette consumption tax, in which ad valorem duty is added in the wholesale segment of cigarettes and the taxable value of cigarettes is adjusted; another important adjustment is made to levy liquor consumption tax in the form of issuing circulars by State Administration of Taxation.In this thesis, starting from definition, character and function of consumption tax and the concepts of the system of consumption tax, the problems existing in the legal system of consumption tax are analyzed and the formulation of further improving the legal system of consumption tax in China is proposed on the basis of these deficiencies. This thesis is divided into three chapters.Chapter-1 is about the definition of the concept of consumption tax and the establishment of its legal system. In the first section, the definition of consumption and consumption tax is clarified. In the second section, the feature of consumption tax is briefly introduced. In the third section, the function of consumption tax is summarized. In the fourth section, the establishment of the legal system of consumption tax in China is introduced.Chapter-2 is about the running state of the legal system of consumption tax in China. In the first section, the main content and the development of the legal system of consumption tax in China is introduced. Since tax reform of 1994 began, consumption tax has been established officially as an independent tax. The consumption tax adjustment of 2006 is an institutional reform for exercise tax system, which further optimizes the system of consumption tax in China and more fully displays the special adjusting effects of consumption tax for economy and environmental protection. In the second section, the existing problems in the legal system of consumption tax in China are summarized from the aspect of the requirements of tax legalism and of the element content of consumption tax collecting firstly, Statutory Taxation Principle hasn't been explicitly stipulated in the Constitution in China; secondly, the absence of the taxation basic law; thirdly, the system of authorized legislation in revenue is non-standard; fourthly, the local authority lacks modest legislative power of consumption tax; fifthly, the level of legislation is lower; sixthly, there exist some weaknesses in the aspect of elements of consumption tax collecting. For example, the division of tax items is quite general, tax rate is unscientific, the segment of tax collection is unitary, the implementation of taxes included in the calculated prices is irrational, and the tax basis is non-standard, etc.Chapter-3 is about the perfection of the legal system of consumption tax in China, which is the core of the paper. Based on the fore-chapters, by learning the advanced experience of foreign countries in legislation, the formulation to improve the legislation of consumption tax in China is put forward on the problems existing in the legislation of consumption tax In the first section, the principles for reform of the legal system of consumption tax in China is clarified. That is to say, the legal system of consumption tax should theoretically implement principle of the benefits, the limited collecting, the economical collecting and the distinctive collecting; and the legal system of consumption tax should practically help to strengthen central government's ability for macro-economic regulation and control, and should practically help to unify tax law and fair the tax burden so as to become compatible with internationally accepted practices, while the financial revenue is guaranteed. In the second section, the main content of completing the legal system of consumption tax is introduced. In the third section, the reformatory means of the legal system of consumption tax in China are elaborated: first, to standardize tax legislation; then, to give the local authorities certain legislative power; next, to promote the legislative level of consumption tax; at last, to complete the tax collection system of the legal system of consumption tax. In the fourth section, the reformatory measures of the legal system of consumption tax in China are elaborated emphatically, which include the following aspects: Firstly, to adjust the incidence of consumption tax; secondly, to appropriately adjust the rate of consumption tax; thirdly, to complete the links of consumption tax; fourthly, to change taxes included in the calculated prices to price excluding price; fifthly, to adjust the computation method of part tax items; sixthly, to standardize the basis of consumption tax; seventhly, to carry out tax payment assessment of consumption tax.