Research Of The Cost For Primary Taxation

The financial management system of taxation separation was established in 1994, which indicated the starting of the local taxation system in our country. In the past 16 years since the reform, the total income of the local tax was increasing continuously and the local taxation system was kept improving all the time. As the main financial income of the local government, the local tax is becoming more and more important in the economic development of the whole society. Recently, with the development of the economy and the fast increasing of the financial income, the taxation cost is also increasing very fast. The increasing rate of the taxation cost is even faster than that of the financial income, which is a dramatic phenomenon in the economic development in recent years, especially for the local tax bureaus. The fast increasing of the taxation cost will not only affect the pure income of local tax, but also affect the policies and information from the government. Therefore, it is very important to study how to decrease the taxation cost in the current local taxation system.The elemental local tax bureaus are the basic organizations in the local taxation system, since they are the elemental units in collecting taxes. As the representative and executive office of the economic legal operation department and all the national taxation policies, the local taxation system is very important in the county economy development. While, comparing to the municipal taxation cost, the taxation costs in county and below levels are much higher. The national average taxation cost is a little bit higher than 4%. If not considering the low cost for the municipal taxation, the average taxation cost is between 10% and 20% for the county level, sometimes even higher than 20%, which means that the county taxation cost is much higher than the national average. The separate establishment of the tax bureaus for the state taxation and the local taxation is an important reason causing the high taxation cost in our country.Taking the case of the local tax bureaus in R county, the thesis systematically analyzed the intrinsic and exterior factors causing the high taxation cost in local tax bureaus based on the own taxation experiences and the national and international theories about the taxation cost. Based on the related theories and the experiences, the thesis is trying to find the factors affecting the taxation cost and efficiency for the local taxation in R county. The thesis also gave some suggestions for decreasing the taxation cost and increasing the taxation efficiency of the local tax bureaus in R county.