Research On Optimizing Local Tax System Under The Background Of Changing From Business Tax To Added-value Tax

After the system of tax distribution was reformed in 1994,as the main source of local government revenue,the local tax revenue plays an important role in regulating the development of local economy and providing local public services.However,the reform tax system focuses on the guarantee favoring the central financial authority,which to some extent has ignored the local tax power and tax system construction.Currently the problems existing in the local tax system are:First of all,the division of tax power tends to the central government;Secondly,the establishment of tax categories is unreasonable,especially the reduction of the tax base of the main tax categories after the change from business tax to VAT;Thirdly,the tax collection and management is weak,and the degree of tax compliance is not high enough.At present,the local tax revenue in China can't meet the financial needs of local governments,which to some extent restricts the performance of local governmental the function.Under the background of "Change from business tax to VAT",it is necessary to improve the local tax legal system of our country,re-establish the new main tax category,and strengthen the force of collection and management.The reasonable and perfect local tax system is helpful to arouse the enthusiasm of local governments in managing local affairs,enable the local governments to attach importance to effectively controlling the local tax sources,and thus ensure the steady increase of local tax revenues.This paper combines with the literature review and the practical work,to streamline the advantages of the local tax system in Japan,the United States and the United Kingdom and selects the local tax system of Nanjing under the background of"Change from business tax to VAT" as the research subject.This paper is divided into five parts:The first part introduces the background and significance of the study,clarifies the purpose and method of the study,describes the current situation of research at home and abroad,and explains the innovation and shortcomings of this paper.The second part defines the connotations and related concepts of the local tax system,and illustrates the historical evolution process of the local tax system,as well as points out the current situation and problems of domestic local tax system from three aspects including local tax power,tax category and collection and management.On the basis of studying the finance and tax revenue of Nanjing,the third part combines with the questionnaire survey of "the current status of local tax system after change from business tax to VAT" that was carried out by the cadres of Nanjing Local Taxation Bureau to analyze the current Nanjing local tax system in the context of" change from business tax to VAT " in the tax power,tax categories,collection and management in details.In the 4th part,through the comparative analysis of the local tax systems of America,Japan,the United States and the United Kingdom,the author draws lessons from the practical experience in the local tax system of developed countries.The 5th part takes Nanjing as the main research subject,puts forward the corresponding specific political suggestions from the aspects of tax power division,the main tax category selection as well as the tax collection and management,and carries out the feasibility analysis.