Thinking About Perfect The System Of The China’s Securities Transaction Tax

Since the securities transaction stamp tax（STST） created, it has a strongcharacteristic in the period of economic transformation from planned economy tomarket economy.It only depend on the government departments’ policies to applydifferent tax laws, and the government adjusts the tax rate to be low or high by theirsubjective judgment according to the market.This makes the STST become a specialtariff just because lack of the legal basis, So the STST is often criticized by people.There are a lot of discussions about whether cancel the STST from the media and thescholars both in China and abroad.Some researchers believe that increasing STST in one way can increasetransaction costs, in another way it will affect the liquidity of the stock, therefore thiswill increase the volatility both in stock market and noise trading revenue; but someresearchers hold the opposite opinions. There are different situations in differentcountries. That’s why we have different results of studies.According to market situation to adjust the STST rate has become the mostimportant policy to macro-control the securities market in China. We have changedour STST rate many times, but it is obviously that it’s difficult to control the dynamicof the policy, which lead to the effect of regulation whether not in position orhypercorrection. As the main securities, the STST played an important role in theorganization of government revenue and macro-control securities market. But with the expansion of the scale of securities market in China, this single securities tax hasexposed a lot of problems. How to properly develop and improve our system of STST,to make the stock market have a healthy and stable developing environment,not onlythe investors’ wish but also a test about the management of our government and thestock market.With the development of the economic, it has become a trend of internationalfinancial reform to cancel and reduce the STST from the development experience ofthe world’s major stock markets. The major countries in the world have already madethe rate of the STST lower, which reflecting the direction of the reform about STST. Italso means that is an inevitable trend in our country. We also need to learn thesuccessful experience from the mainstream international securities markets, so that wecan optimize the system of China’s securities market that adapted to China’s situation.and this has an important positive significance to support and promote the stockmarket has an health, stable and orderly development environment.The paper has five sections. The first is introduction.It starts with the backgroundof the research about STST, and based on the large number of reference documents, the paper gives a brief overview on the research results that we have now. The secondsection begins with the general theory about the STST. It introduces the concept andthe tax basis of the STST. This part also presents the historical and current situation ofSTST. The third part analyzes the impact of the stamp duty adjustment for China’sstock market, pointing out that the problem that current system of STST has now. Thefourth section compared the securities trading system with the developed countries, inorder to learn more from these countries and applied those successful experiences inChina. The fifth part gives some useful suggestions which is based on our ownsituation to make the STST become much better. For the reason of lack of economicsand finance knowledge and it is difficult for me to grasp the realities of China’ssecurities market, this paper inevitably lacks empirical research and support.Your comments are apprecieate.