The Reconstruction Of The Local Tax System Under The Background Of The Business Tax To Value-Added Tax Transformation

The business tax to value-added tax (VAT) transformation pilot started in2012marked the tax system reform of our country has entered a new stage. After VAT reform gradually improved, this pilot is actually the important part of the finishing touches. A new round of tax reform is bound to break the original local tax system. There will be a big change in the tax revenues scale and composition of local tax system. Rebuilding the local tax system in conformity with the new social background has become increasingly important. To promote stable and healthy development of the local government, straighten out the relationship between the central and local government, we need to build a local system under the background of the business tax to VAT transformation reform. We also need to analysis of the new problems and challenges bringing by the background, to find out the reasonable countermeasures of reconstructing the local tax system.According to the pilot’s background, this article focuses on the reconstruction of the local tax system. The main content is divided into five parts:The first part introduces the basic situation of this article, including the research background and significance, research ideas and methods, and innovation and deficiency of this article.The second part analyzes the current situation of local tax system, under the background of the business tax to VAT transformation reform. In accordance with the order of the package and the experimental results, this part first interprets the related policy of the reform, laid a theoretical foundation for the quantitative analysis for the rest of the article. Then it introduces the development of the reform of tax federalism, and analyzes the present situation of the local tax system, including the local tax authority, the local tax revenues scale and the local tax revenues structure.The third part expounds the influences of the reform of the local tax system, including the impact on the local tax permissions, the impact on the local tax revenues and the impact on the local tax collection and management. In the part of the impact on the local tax revenues, it extends the impact of the reform from the pilot areas to the whole country after the reform fully implementing. It includes the changes of the business tax revenues, the changes of the VAT revenues and the changes of the enterprise income tax revenues. It also assumes different VAT sharing ratios to observe the effects.The fourth part puts forward the specific way to build a local tax system under the background of the reform. According to the various effects of the third part, it puts forward the corresponding policy recommendations, including giving the local government some proper tax legislative rights, guaranteeing the local tax revenues, and improving tax collection and administration efficiency. In the part of guaranteeing the local tax revenues, it is divided into three measures as setting the property tax system as the main local tax, establishing and perfecting the environmental tax system, and adjusting the VAT revenues sharing ratio. In addition, it puts forward two supporting measures. One is perfecting the transfer payment system and the other is establishing the governance and responsibility corresponding system.The fifth part summarizes the full text of the article.In the process of the research, this article adopts the mode of the combination of theory and practice, analyzes comprehensively combining with China’s current national conditions. This article mainly bases on the qualitative analysis, supplemented by the quantitative analysis. This article puts the problem of the local tax system reconstruction in the background of the business tax to VAT transformation reform, which is more specific and realistic. From the perspective of public finance management, this article makes a full inspection of the local tax revenues. Trying to be extended on the basis of previous studies, it illustrates the direction and methods of the reconstruction of the local tax system as far as possible under the background of the new era.But as a result of the reform model, the number of pilot areas is limited and the data source is not very enough. In view of the impact on the local tax revenues of the whole country after fully implementing, it hasn’t been able to give quantitative analysis. It simply expounds the possible results of the reform after fully implementing. In addition, because of the limited research and academic ability, there are many drawbacks of the reform proposals put forward in this article.