Research On China's Consumption Tax Reform Under The Background Of "reform Of The Camp.

The government began to do the pilots of replacing business tax with VAT in the transportation and modern service industries in Shanghai,on January 1,2012.We have spent three years to do the pilots by the end of 2014.The policy of replacing business tax with VAT makes the value-added tax system much better than before.It makes taxpayers get a tax deduction in the larger field.It solves the problem of double taxation in our commodity tax system.But at the same time we find that,on the one hand,there are five levels of tax rate in our current VAT system.More levels of tax rate have a negative effect on VAT system.It is difficult for the VAT system to keep neutral.On the other hand,with the advance of replacing business tax with VAT the local government will lose the principal tax.It is necessary for the government to decide the new local principal tax.Considering VAT system and consumption tax system have a cooperative relationship,we research the consumption tax system from the problem which we face in the process of the reformation of replacing business tax with VAT.We analyze the current consumption tax system and summarize the weakness.We learn about how developed countries design their consumption tax system and get some useful suggestions.We put forward a series of proposals in order to make consumption tax system much better.For example,we suggest the government to cut down the basic tax rate of VAT and decrease the levels of VAT tax rate.We advise the government to expand the scope of consumption tax and adjust the tax rate moderately so that we can make the cooperative relationship between VAT and consumption tax have more positive effect.Taking these measures is good to keep neutral of VAT.In addition,we suggest the government to collect the consumption tax at the retail level and change the consumption tax into the local principal tax.In this paper,firstly,we introduce some theories about how to improve the consumption tax system and share some opinions on the reformation of replacing business tax with VAT.Then we analyze the current consumption tax system and summarize the weakness.In order to improve the consumption tax system,we learn from the experience of developed country.In the background of replacing business tax with VAT,we give a number of proposals to improve our consumption tax system.We hope the tax system can get better and better.