In a report held in Shenzhen in August 22nd, Jia Kang, chief economist at Huaxia new Institute of supply economics, said, next, the focus of fiscal reform is consumption tax, resource tax and other taxes.
The reform of the financial and tax system concerns every man's pocketbook and the survival and development of each enterprise. In the third Plenary Session of the 18th CPC Central Committee to deepen fiscal and tax reform as a key part of comprehensive deepening reform, followed by the "deepening the overall tax reform plan" to improve the budget management system, improve the tax system, establishing powers and expenditure responsibilities to adapt the system goal to make specific arrangements, replacing business tax with value-added tax(VAT) revision of the budget law, resource tax, etc. a number of reforms continue to advance, the real estate tax, environmental tax has also been put on the agenda, and become the focus of public opinion.
How to assess the achievements of this round of financial and tax system reform, and what is the focus of the next reform? At the report held by the Shenzhen Institute for innovation and development, Jia Kang carried out an interpretation.
When talking about budget reform, Jia Kang said: "the attitude of the central government is very clear, and now many of the budgets have been hung online, and the level of refinement is required.". The place should be dealt with according to this, besides matters of confidentiality all hang to the net, this is sooner or later the problem. The people's right to know has been improved."
In tax reform, the camp changed to increase, this is the first two years of tax cuts. Since May 1, 2016, China ushered in the deep reform of the tax system, the tax from the stage of history, "replacing business tax with value-added tax(VAT) policy is fully implemented, and will expand the scope of the pilot to the construction industry and real estate industry, financial industry, life service industry.
Next, what is the focus of the reform of fiscal and taxation system? Jia Kang believes that the reform of consumption tax is bound to be discussed.
Consumption tax is a general term for various kinds of taxes in which the amount of circulation of consumer goods is levied. It is a typical indirect tax. Since the big eighteen, the reform demands that the scope, link and tax rate of consumption tax should be adjusted, and that the high energy consumption, high pollution products and some high-grade consumer goods should be included in the scope of taxation. In June 30, 2014, the overall plan for deepening the reform of fiscal and taxation system was adopted to discuss the direction of the reform of the consumption tax in the future".
Jia Kang added, "one more thing to discuss is resource tax reform. In the long term, these resource products will become more and more expensive, the government regulation will not weaken efforts. In addition, real estate taxes and personal income taxes are also likely to be discussed."