Collection Links And Income Attribution Of Car Consumption Tax Reform Research

On September 26,2019,"Adjustment of Central and Local Revenue Division Reform and Promotion Plan after Implementing Larger Tax Cuts and Fees Reduction" was printed and distributed.The plan points out that the consumption tax collection link will be moved backward and the income will be attributed to the local government.On the premise of controllable collection and management,move back the collection link of some consumption tax items,increase local fiscal revenue,guide local governments to improve the consumption environment and gradually improve the local tax system.Through the approved base,the central government retains the tax stock,and local governments enjoy incremental income,so as to ensure the stability of the existing financial structure between central and local governments.Under the guidance of the plan,this paper will explore the feasibility of car consumption tax as the leading tax item of reform.Firstly,understand China’s consumption tax,define its nature and summarize its characteristics.On this basis,sort out the tax system elements and development process of car consumption tax,and then lay a theoretical foundation for the reform by exploring the functional orientation of car consumption tax,as well as the relevant theories of consumption tax collection links and income attribution.The second is the realistic investigation of the collection link and income attribution of car consumption tax.It is recognized that the current collection mode is the choice under specific historical conditions,which does not match the attributes of some consumption tax items,and is not conducive to the high-quality development of economy and the effective exertion of the function of car consumption tax.On this basis,it discusses the feasibility of the reform.The collection of retail links can not only realize the controllable collection and management mentioned in the plan,but also comply with the international trend of car consumption tax system design.However,the reform is accompanied by the problems of insignificant effect of local financial resources growth and heterogeneity of regional financial resources distribution.The third is the numerical simulation of the financial distribution effect produced by the reform.Firstly,the national car consumption tax revenue in the retail link is calculated.With the backward collection link,the tax basis of car consumption tax is significantly expanded,and the tax revenue increases accordingly.Then it estimates the regional distribution of car consumption tax under the principle of place of production and place of consumption,and finds that the distribution of tax sources levied according to the principle of place of consumption is more balanced.Finally,the car consumption tax belonging to the local government is calculated under the two ways of incremental allocation and all allocation according to the principle of consumption place.The results show that the financial balance effect of incremental allocation is better,and all allocation is more conducive to the local government to expand the source of income.At the same time,the reform is accompanied by a series of problems.In terms of vertical financial distribution,compared with the gap of local financial revenue and expenditure,the effect of the reform to achieve local financial growth is not significant.In terms of horizontal financial distribution,there is heterogeneity in regional financial distribution.In summary,this paper believes that the car consumption tax should be transferred to the retail sector,and the incremental income should be transferred to the local level,and puts forward policy suggestions supporting the reform.First,incorporate the vehicle purchase tax into the car consumption tax,effectively expand the source of local income,and solve the problem of double taxation in the process of car purchase;Second,the consumption tax on cars should be changed from within price tax to outside price tax to guide rational consumption;Third,establish an income regulation mechanism to subsidize provinces with tax outflow and slow growth,and improve the financial disparity between regions;Fourth,introduce anti tax avoidance provisions to improve the level of tax collection and management;Fifth,speed up the legislation of consumption tax to standardize the vicious tax competition of local governments;Sixth,optimize the tax rate structure.