The Research On Perfecting Local Tax System Under The Background Of VAT Replace Business Tax

Under the background of socialist market economy,with the implementation of the tax distribution system in 1994,mobilizes the enthusiasm of local governments,promotes the rapid growth of tax revenue,and lays a solid financial foundation for the provision of public services and infrastructure construction by the central and local governments.However,with the development of society,the drawbacks of the reform has become increasingly prominent,such as,the construction of local tax system has been neglected,the gap between local fiscal revenue and expenditure has expanded,the local government excessively relies on the central financial transfer payment.Furthermore,the pilot policy of VAT replace business tax was introduced in 2012,and soon promoted in all industries throughout the country in 2016,aggravates the difficult position of local tax revenue,exert the lack of the main local taxes,reduce the efficiency of tax collection and management and some other negative effects.This has put forward new requirements for the local government's ability to provide public goods and services and to fulfill the functions of the government.In order to effectively perform their respective functions by central and local government and straighten out the relationship between them,we should perfect local tax system under the background of the VAT replace business tax,study the impacts on tax economy by the reform in depth,and find out the countermeasures to perfect the local tax system.On the basis of reading a large number of documents,and combining with the actual work,this thesis draws lessons from the experiences of the developed countries in the world to construct the local tax system,chooses Zhejiang Province as the study object,analyzes the influences of the VAT replace business tax reform on the local tax system of Zhejiang Province,and looks out new ways for reconstructing the local tax system of China.This thesis defines the concept of local tax and local tax system,analyzes the existing local tax system in the US,UK,Japan and Brazil,which can be drew lessons from.This thesis analyse Zhejiang local tax system in three aspects,the tax power,tax scale and the main categories of tax,as well as the influence of the VAT replace business tax on the local tax system of Zhejiang Province.Based on the analysis above,this thesis puts forward some suggestions,such as perfecting the legal system of local tax,establishing the main tax category of local tax,constructing the local tax system rationally and strengthening the management of local tax.