Indirect Tax Theory And Indirect Tax Reform In China Is Perfect

The article totally insists of five parts:Part 1 mainly expounds three basic knowledge of indirect tax. The first is intension and extension of indirect tax. The second is indirect tax incidence. On the basis of using two conceptions namely balanced budget incidence and different incidence, it analyses indirect tax incidence and also expounds partial equilibrium analysis and general equilibrium analysis of indirect tax incidence. The third is indirect tax system. As for the pattern of indirect tax system, it comparatively analyses turnover tax pattern, sale tax and consumption tax pattern, value added tax and consumption tax pattern, expecting to offer a theoretical precondition for choosing the pattern of indirect tax system. As for the structure of indirect tax, it's carried out in two aspects, interior structure and distribution structure.Part 2 is the research on equity and efficiency of indirect tax. The analysis of indirect tax equity is carried out on the basis of opportunity criterion, utility criterion and benefits-received criterion. Efficiency, mainly expounds efficiency losses and efficiency improvements. The author adopts partial equilibrium and general equilibrium to analyse efficiency losses. Concerning efficiency improvements, it analyses from exterior cost commodities and exterior beneficial commodities. Then the author put forward that equity and efficiency can go to internal unity. Part 3 deals with a comprehensive study of our country's indirect tax. Firstly, it makes an historical review of indirect tax. From establishing tax system in 1950 to complete reformation in 1994, indirect tax went through a process of unceasing reformation and improvements. Secondly, it objectively evaluates an important status of indirect tax in the structure of tax system. Thirdly, it expounds an adjusting effect of indirect tax in different period. Finally, it analyses the main problems of the current indirect tax.Part 4 is specific suggestions on further reforming and improving indirect tax. Successful experience of international indirect tax reformation will be useful to our's reformation. Owing to the different conditions of each country, it expounds respectively developed countries and developing countries. Considering our country's realities, it poses suggestions on reforming indirect tax.Part 5 is about auxiliary work of the indirect tax reformation. It must be done well. This part expounds with emphasis the proportion relationship of indirect tax and direct tax, the direct tax reformation and changing fee into tax.