Improve The Local Tax System Under The Background Of VAT Reforms To BT

The third plenary session of the18explicitly put forward the requirement of thereform of tax system, China’s new round of tax reform camp change has kicked offacross the country, and the next step the fiscal and taxation reform includeoptimization of the structure of government revenue and tax structure, complete theVAT reform, and many other aspects. Will change business tax levy value-added tax,not only is the need of eliminate double taxation, reduce the tax burden on enterprises,but also need to promote the development of second and third industry better fusion.Camp to carry out smoothly increased influence government revenue structureoptimization, especially the income structure of local government, under thebackground of how to increase the camp to optimize local taxes income structure,improve the local tax system becomes an urgent need to solve the problem.Existing in the current system of local taxation co., LTD, there was no differencein the local small and local income tax, business tax change paid VAT is bound toaffect local tax system, makes the local system problems become more prominent,therefore, the improvement of the local tax system is closely related to VAT Reformsto BTsmoothly.In this paper, using the method of literature reading method and specification.First of all, through the reading of vast amount of literature to understand the currentlocal system and the imperfect parts of the camp change process, and sums up thecurrent academia for VAT Reforms to BTfound problems in the process of thesolution. Second, by adopting the method of normative analysis of the current localtaxes income on a smaller scale of quantitative analysis, on the basis of the datareasonable estimates place to share the proportion of value-added tax revenue, toensure that the local government in the process of VAT Reforms to BTthe incomescale basically remain unchanged.The main results were as follows: system reform in our country in1994with arelatively strong dependence on traditional financial system, which makes on the basis of the fiscal and taxation system reform of local tax system is first formed, has not yetbeen fixed into a complete form, there is a widespread: local taxes system localtaxation is limited, but there was no difference in the local duty, small size, largedegree of local revenue is dependent on the issues of non-tax revenue. Camp toincrease, further weakening the size of the local tax revenue, reduce the local fiscalrevenue, impact to increase the enthusiasm of local government for camp. Before thereform, the business tax as the main local tax, tax revenue accounts for about a thirdof the total amount of local tax revenue, the business tax instead of as a Shared tax ofvalue-added tax, despite the relevant policy can maintain constant local taxes incomescale, but not for the tax revenue of local government to provide long-term, stable andreliable system guarantee; Lack of local duty is also to foster the subject of local tax,local tax system is an urgent need to cultivate enough to replace the body of thebusiness tax tax; Business tax reform makes the collection of local tax authorities,local contentious rationality and necessity of the existence of tax authorities.Local taxes system in the protection of local fiscal revenue, maintain normal toplay a major role of local government and camp in the current critical period ofchange, should perfect the local tax system, optimize the structure of local tax revenue,fully arouse the enthusiasm of local governments carry out camp to increase.