What Is a Local Tax?

Local taxes are symmetrical of the "central tax". Taxes collected by local governments. It belongs to the fixed budget revenue of the local finance. According to the 1988 fiscal management system, the main types of local taxes are: urban maintenance and construction tax, slaughter tax, real estate tax, urban land use tax, farmland occupation tax, vehicle and vessel use tax, deed tax, livestock transaction tax, and market transaction tax , Feast tax, etc. The basic management right of local taxes in China still belongs to the central government. Within the scope of taxes determined by the central government, local governments can decide to suspend collection, check the applicable tax rate in the region, and formulate specific collection management methods.

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There are roughly three types of division of local tax management authority in various countries in the world: legislative power and management

In major western countries, local taxes are national

In China, it is clearly placed under local management and control

Local taxes include the following taxes:

1. Where to pay business tax

The local tax system refers to a conglomerate composed of a variety of local taxes, a certain income scale, a clear division of tax rights, and a relatively independent collection management agency. Therefore, the local tax system consists of local taxes,

From the background of the market-oriented reform of the Chinese economic system, the reform of the tax-sharing system is the prerequisite and basis for the market-oriented reform of the Chinese economic system. It is no exaggeration to say that without the reform of the tax-sharing system, the market-oriented reform of the economic system is empty talk. The core of the tax-sharing reform is to divide the financial rights of the central and local governments on the basis of dividing the powers of the central and local governments. In layman's terms, in accordance with the requirements of the reform of the market economy system, after determining what the central and local governments should manage, they each go to "find money" to complete these matters, and each set up their own taxation agencies to collect income to complete the tax according to the tax law. Individual matters, this is the fundamental reason for the establishment of national tax and local tax agencies. The establishment of national tax and local tax institutions is an inherent component of the tax sharing system and is essential. Under the conditions of the planned economy system, the central government is responsible for all matters to be commanded and distributed by the central government. Natural financial power is naturally arranged and allocated by the central government. Taxation matters are uniformly managed by a set of tax agencies directly under the central government. If the national tax and local tax institutions are merged, then it will become either the central government bears the taxation costs that should be borne by the local government, or the local government bears the taxation costs that should be borne by the central government, and departs from the direction of the tax sharing reform. Departed from the direction of market-oriented economic system reform. Therefore, there is only one possibility for the consolidation of local institutions of national tax, that is, the retrogression of China's economic system reform, the retrogression of China's tax sharing system, the return to the planned economy system, and the centralized fiscal and taxation system.

From international experience, most countries that implement tax-sharing fiscal systems have two sets of national tax and local taxation agencies, especially in the big country model, which have no exceptions. The United States, Japan, the United Kingdom and other developed countries have established national tax, local tax agencies, and many developing countries also have national tax, local tax agencies. Although each country in the world that implements the tax sharing system has its own specific national conditions, the matter of setting up a national tax and local tax agency is surprisingly consistent. Moreover, historically, no country that implements a tax-sharing system has set up national tax and local tax agencies and merged two sets of tax agencies. What is more interesting is that the "rumors" of fiscal and tax reform abroad are concentrated on the reform of the tax system. I have not seen the "rumor" of the merger of state and local taxation agencies. As a country that also implements the tax sharing system, China's national tax and local tax institutions are not original, but rather draw on international experience. China's tax sharing system model is more based on the German tax sharing system model.

In China, there was a view that the national and local taxation agencies should be integrated and integrated into the framework of local government management. This view not only ignores the laws of the development of the basic market economy, but also ignores the laws of basic politics. The control of tax power and the affiliation of tax agency management power are a symbol of the integrity of state power and the prerequisite for the stability of the central government. The ancient and modern Chinese and foreign experience shows that the central government of any country will not give up tax rights and will not give up the management of tax institutions. Even in a federal state like the United States, its central government still has a firm grip on the management of "national tax" institutions.

China is promoting the trial of changing business tax to value-added tax. As business tax is an important tax levied by the local tax department, there are some opinions that with the deepening of tax reform, the business of the local tax department will shrink significantly, and there is no need for the local tax department to exist independently. This view does not recognize the direction of China's tax reform. With the continuous deepening of the tax reform, the business of the local tax department will not only shrink, but also expand, and the role of the local tax department will become more prominent. Because the direction of China's tax-sharing reform in the future is that the central and local powers and financial power will be more matched, and fiscal revenue at the local control will increase. With the deepening of the real estate tax reform, real estate tax collection and management requires a lot of manpower and material resources. In the future, the main task of local tax administrations for tax collection and management is to conduct real estate tax collection and management. If China implements the inheritance tax system in the future, the task of local taxation will be more onerous.

In summary, from the comparative analysis of foreign local tax systems, we can see that national government, economic system, economic development level, historical traditions are important factors that influence or even determine the choice of a country's local tax system model. The construction of the local tax system not only covers various aspects such as local tax rights, local taxes, local tax scale, and the establishment of local tax collection and management institutions, but also their interaction and interaction. For example, the latter three contents are determined by local tax rights to a certain extent. , Reflects the content of local tax rights, but also profoundly affects the degree of realization of local tax rights in local government tax activities. Therefore, the construction of a country's local tax system is complex and systematic, and these will undoubtedly have very important reference and inspiration for the construction and improvement of China's local tax system. ^[1]