Study On The Main Category Of China's Local Tax System

As the core of local tax system, the problem of main category is also the topconcern when improving the local tax system. Due to the unstable situation ofChina's local tax revenue, the local governments have difficulties implementingtheir various administrative functions and dealing with the relations properlywith the central government .At the same time, given the fact that the lack ofbasic legislation on tax, China's current tax sharing system can not provide aformal and stable channel towards the tax revenue .The construction andcompletion of local tax system under a public finance frame make it urgent to setformal and stable main category of local tax as soon as possible. Many countriesmake property tax the main tax category in their local tax systems, which isinevitable considering their own specific situation. During the process of study inChina's local tax system, some scholars proposed such a choice as practiced inthose countries, but most of which seem relatively general and not particularenough. As there is no universal or fixed model in the case of choosing the localtax category, experiences from foreign countries can only serve as a trendreference, specific design should still be based on China's reality when makingthe choice in this field.In this article, the author started from the analysis of the basiccharacteristics, evaluating standard, restricting factors of the main category inlocal tax system, and other relevant aspects in this sector, applying method likecase analysis, demonstrating large amounts of statistics, in order to reveal thecurrent situation of the lack of the main category in China's local tax system;Meanwhile, in the introduction and comparison of experiences and lessons fromadvanced countries, developing countries and those still under transition, addedby the analysis of China's current situation , the author proposed an idea ofchoosing and cultivating the main category in China's local tax system, setting agoal model in which business tax becomes main category in provincial-level localtax system and property tax the main category in municipal and county-levellocal tax system respectively, therefore providing reference to main categorychoosing and the reform in China's local tax system.