Building And Improving China's Local Tax System Under The Background Of "Business Tax Reform VAT"

As the top priority of China's new round of tax reform, "business tax reform VAT" in 2012 officially launched. With the "business tax reform VAT," the comprehensive expansion of the local tax system in China's main taxes-business tax is facing extinction, the local tax system is facing reconstruction.Under the background of "business tax reform VAT", this article analyzes current situation and existing problems of the local tax system in our country, and takes Hangzhou as an example of "business tax reform VAT" to analyze the impact on the regional tax and local financial resources.In depth analysis of the financial system of France, the United States, Japan and other different types of representative countries, summed up the construction of the local tax system in our country experience:first, local tax system with complex tax system; second, the division of tax right should make the local government has a stable source of income; third, building a strong management team, improving the protection mechanism; fourth, local government should have main taxes; the fourth, establishing and perfecting the transferring payment system.According to the characteristics and requirements of the local tax main types of taxes, in the current central tax and tax sharing list for the choice of a number of taxes, respectively, analysis and calculation. Select the local tax main taxes, in the short term is to fill the income gap camp changed to increase, the long-term point of view to achieve the purpose of optimizing the allocation of resources, adjust the two distribution, the organization of local fiscal revenue. For short-term and long-term goals, we developed two sets of programs:short term is will the consumption tax as the main local taxes, auxiliary to the vehicle purchase tax and personal income tax, and preliminary calculation and demonstration data in China and in Zhejiang Province; long term is to the real estate tax as the main local taxes is the most suitable, should absorb the property tax pilot experience, the reform of real estate tax system, it developed into the main local taxes.At the end of this paper, from the angle of the perfection of the local tax system proposed five suggestions:clear the local tax system construction goal and principle; the second is matching the powers of local governments and tax right; third, reform and improve, including resource tax, local tax auxiliary taxes; four is a sound tax system supporting systems, such as the transfer payment system, County Administrated by Province system, etc.