In handling the fiscal relations between the central and local governments,especially in relation to taxation,the method of revenue-sharing has been widely adopted.Findings of this study show that when the intergovern...In handling the fiscal relations between the central and local governments,especially in relation to taxation,the method of revenue-sharing has been widely adopted.Findings of this study show that when the intergovernmental division of administrative authority and spending responsibility is relatively stable,tax-sharing is superior to revenue-sharing,and that tax-sharing should take precedent over revenue-sharing in future tax and fiscal reforms.Reform initiatives should include measures to significantly reduce value-added tax(VAT)rates and classify it as central tax,to collect retail sales tax in commodity consumption as a local tax and to cancel the business tax.Under this system,the main types of taxes levied by the central government include VAT,corporate income tax and consumption tax,personal income tax is imposed by provincial governments,retail sales tax by county governments.展开更多
文摘In handling the fiscal relations between the central and local governments,especially in relation to taxation,the method of revenue-sharing has been widely adopted.Findings of this study show that when the intergovernmental division of administrative authority and spending responsibility is relatively stable,tax-sharing is superior to revenue-sharing,and that tax-sharing should take precedent over revenue-sharing in future tax and fiscal reforms.Reform initiatives should include measures to significantly reduce value-added tax(VAT)rates and classify it as central tax,to collect retail sales tax in commodity consumption as a local tax and to cancel the business tax.Under this system,the main types of taxes levied by the central government include VAT,corporate income tax and consumption tax,personal income tax is imposed by provincial governments,retail sales tax by county governments.
