Data III: Tax-sharing system
The main contents of China's tax-sharing reform in 1994
In summary, its main content is:
1. Reorganize the tax structure, eliminate some unreasonable taxes (such as product taxes), and replace them with taxes that are more in line with market-oriented reform, such as the collection of value-added tax and standardized consumption tax.
2. Re-divide central tax, local tax, and central local shared tax. Make the central government obtain greater financial resources.
3. In order to protect the vested interests of provinces and cities (especially rich provinces and cities), the central government has designed a tax rebate system.
The tax-sharing system is a fiscal and tax system commonly implemented in market economy countries. It is a normative way to deal with the distribution relationship between the central government and local governments. The general practice is: to divide income according to tax type; the central government centralizes the necessary financial resources to implement macro-control; the central and local tax institutions are set up separately; there is a scientific and complete central-to-local income transfer payment system. Judging from China's current national conditions, the ideal model of establishing a tax-sharing financial system in the short term still lacks the necessary conditions. It can only be gradually in place. The basic principle of the reform of the tax-sharing system is to divide the central and local fiscal revenue according to tax types on the basis of the division of power; implement the transfer payment system on the basis of the appropriate centralized financial resources of the central government; the central and local governments shall set up tax institutions and manage the budget at different levels. The basic idea of the tax-sharing reform is to take 1993 as the base year for the financial system reform to ensure the financial resources of all localities in 1993. After the implementation of the tax-sharing system, all income transferred from the local net to the central government shall be returned to the local government according to the base of the net income transferred to the central government, which is called the central tax rebate. Considering the needs of normal growth of local expenditure, the central tax rebate will gradually increase according to a certain proportion. The northern % of the increase in central revenue will be returned to the local government, and the other 70% of the increase will be retained to the central government. The specific contents of the reform of the tax-sharing financial system mainly include the following four aspects:
1. The division of central and local power and expenditure. The distribution of financial resources between the central and local governments should be based on the principle of the unification of financial power and power. The central financial expenditure includes: national defense, foreign affairs, and armed police. Key construction (including the technical transformation of enterprises directly under the central government and the trial production fee for new products, geological exploration fees), the expenditure on agricultural support and the total repayment of domestic and external debts borne by the central government, as well as the expenditure on various undertakings of administrative institutions directly under the central government. Local finance mainly bears the expenditure required for the operation of the local political organs and the expenditure required for the economic and institutional development of the region. Specifically, it includes the capital construction investment coordinated by local governments, the technical transformation of local enterprises and the trial production of new products, the expenditure on supporting agriculture, the cost of urban maintenance and construction, and the expenditure of various local institutions.
2, 2. The division of central and local fiscal revenue. According to the power of the central and local authorities, the central and local income is divided according to taxes. The taxes necessary for safeguarding national rights and interests and implementing macro-control are classified as central taxes; the main taxes directly related to economic development are classified as central and local shared taxes; taxes suitable for local collection and management are classified as local taxes, and local taxes are enriched to increase local tax revenue. The specific division is as follows: Central fixed income includes : Customs duties, consumption tax and value-added tax levied by customs, central enterprise income tax, non-bank financial enterprise income tax, centralized income paid by railways, bank head offices, insurance companies and other departments, people (including business tax, income tax, profits and urban maintenance and construction tax), profits paid by central enterprises, etc. For export tax rebates for foreign trade enterprises, except for the 20% part that is now borne by the local government, all subsequent export tax rebates will be borne by the central government. Local fixed income includes: business tax (excluding business tax of bank head office, railway and insurance company), local enterprise income tax, profits paid by local enterprises, personal income tax, urban land use tax, fixed asset investment direction adjustment tax, urban maintenance and construction tax (excluding bank head office, railway and insurance company) Centralized payment of the part). Real estate tax, vehicle and vessel use tax, stamp tax, slaughter tax, agriculture and animal husbandry tax, arable land occupation tax, deed tax, inheritance tax and gift tax, real estate value-added tax, state-owned land paid use income, etc. The revenue shared by the central finance and local finance includes: value-added tax, resource tax and securities transaction tax. The central share of value-added tax is 75%, and the local government shares 25%. The resource tax is divided into land resources tax as local income according to different resource varieties, and marine oil resources tax as central income. The securities transaction tax is 50% shared by the central and local governments. Through the above reforms, the pattern of financial revenue directly organized by the central and local governments will change greatly. According to the system, the revenue directly organized by the central government will account for about 60% of the national revenue, the central government's expenditure will account for about 40%, and 20% of the revenue will be transferred to local governments through the establishment of a standardized and scientific transfer payment system.
3, 3. The central government determines the local tax rebates. The amount of local tax refunds from the central government is approved in 1993 as the base year. According to the actual local income, the reform of the tax system and the division of the central and local income in 1993, the amount of income transferred by the central government from local governments in 1993 is approved, that is, the consumption tax + 75% of the value-added tax and the income transferred by the central government (referring to the income transferred to the local governments after the original system and the implementation of the new system), and this It is the base of tax rebate from the central government to local governments. Since 1994, the amount of tax rebates has increased year by year on the basis of 1993, and the increment rate is 1-0 according to the national value-added tax and consumption tax growth rate. 3 The coefficient is determined, that is, for every 1% increase in national value-added tax and consumption tax, the central government's tax return to local governments will increase by 0.3%.
4, 4. The handling of matters related to the original contract system. After the implementation of the tax-sharing system, the distribution pattern of the original system will remain unchanged for the time being. After a period of transition, it will be gradually standardized. The subsidies of the central government to local governments in the original system will continue to be subsidized in accordance with the regulations. The local solution of the original system is still implemented according to different system types. Areas that implement incremental relief shall continue to increase relief according to the original regulations; areas that implement quota relief shall continue to increase quota relief according to the original determination; implement the total amount divided into areas and the pilot areas of the original tax division system, and temporarily according to the incremental solution method, that is: according to the actual number of solutions and the approved increment rate in 1993, annual incremental relief .
The difference between the 2004 tax reform and the 1994 tax reform
The 14th National Congress of the Communist Party of China clearly put forward that the goal of China's economic system reform is to establish a socialist market economy system. In order to adapt to the new requirements of the market economy system for taxation, China's industrial and commercial tax system was comprehensively and structurally reformed in 1994. The guiding ideology of this reform is: unifying the tax law, fair tax burden, simplifying the tax system, rational decentralization, rationalizing the distribution relationship, ensuring fiscal revenue, and establishing a tax system that meets the requirements of the socialist market economy. The main contents are: 1. Unify domestic enterprise income tax, adopt a proportional tax rate of 33%, standardize the items and standards listed before enterprise income tax, cancel the "state-owned enterprise regulation tax" and collect the national energy and transportation key construction fund and the national budget regulation fund from state-owned enterprises; 2. The original personal income tax, personal income adjustment tax, and income tax of urban and rural individual industrial and commercial households are unified into personal income tax, and the excess progressive tax rate and proportional tax rate are adopted for different income items, and different deduction standards are stipulated; 3. Reform the old circulation tax system. The new circulation tax system consists of value-added tax, consumption tax and business tax. Value-added tax is generally levied in the field of industrial production and wholesale and retail commerce, consumption tax is levied on specific consumer goods, and business tax is levied on labor services and sales of real estate that do not implement value-added tax; 4. Expand the scope of resource tax collection, integrate salt tax into resource tax, and implement the method of calculating and levying tax by product from the fixed amount; 5. The land value-added tax is levied to regulate excessive profits in real estate transactions, and the four-grade excess rate progressive tax rate is adopted; 6. It is proposed to levy securities transaction tax, estate and gift tax; 7. Adjust the urban and rural maintenance and construction tax and land use tax, cancel the market transaction tax, livestock transaction tax, special oil burning tax, bonus tax and wage adjustment tax, and decentralizing slaughter tax and banquet tax to local governments. However, in actual implementation, due to various reasons, the reform has not been fully in place. By the end of 2002, there were 24 taxes in China's tax system, namely: value-added tax, consumption tax, business tax, enterprise income tax, income tax for foreign-invested enterprises and foreign enterprises, personal income tax, resource tax, land use tax, fixed asset investment direction adjustment tax, banquet tax, urban maintenance and construction tax, land Value-added tax, vehicle purchase tax, arable land occupation tax, real estate tax, urban real estate tax, vehicle and vessel use tax, vehicle and vessel use license tax, stamp tax, slaughter tax, deed tax, agricultural tax, animal husbandry tax, customs duty.
The basic idea of the tax system reform in 2004 is: in accordance with the principle of "simplified tax system, broad tax base, low tax rate, strict collection and management", around the goal of unifying the tax law, fair tax burden, standardizing the way of government distribution, promoting the coordinated growth of taxation and the economy, and improving the efficiency of tax collection and management, Under the premise of maintaining stable and rapid growth of tax revenue, adapt to the needs of the economic situation and national macro-control, and actively and steadily carry out structural reforms of the current tax system step by step:
I. Change the current production value-added tax to consumption value-added tax, allowing enterprises to deduct the input tax included in the machinery and equipment investment part of the new fixed assets in the current year.
Second, improve the consumption tax, adjust the tax items with increase and decrease, gradually remove ordinary consumer goods from the tax items, include some high-end consumer goods in the scope of consumption tax, and appropriately expand the tax base.
III. Unified enterprise tax system, including unified taxpayer identification standards, pre-tax cost and expense deduction standards, tax rates, preferential policies and other aspects.
IV. Improve personal income tax and implement a comprehensive and classified personal income tax system. The determination of pre-tax deduction items and standards should be more reasonable, and the tax rate also needs to be appropriately adjusted.
V. Implement the reform of taxes and fees for urban construction. When the conditions are met, a unified and standardized property tax will be levied on real estate, and the relevant fees will be cancelled accordingly.
6. Improve the local tax system, reform the existing taxes in combination with tax reform, and start and suspend the collection of some taxes. Under the premise of unified tax administration, local governments are endowed with appropriate tax management authority.
7. Deepen the reform of rural taxes and fees and abolish the agricultural specialty tax; gradually reduce the tax rate of agricultural tax, and tilt to the main grain-producing areas and grain farmers, so as to effectively reduce the burden on farmers. Actively create conditions to gradually unify the urban and rural tax system.
Improve the efficiency and quality of tax collection and management
China changed by the tax-sharing system
In 2002, when I first arrived in Beijing, I chatted with my fellow villagers. One of them was the director of a national ministry and said lightly that he had approved 4 million yuan to his hometown. I am surprised. In the local place, this is the clear water government with the least real power and oil and water. In the central government, a small director actually has such a large financial control! In localities, not to mention the leaders of the county, even the leaders in most cities do not have such a large financial control. For nothing else, the local finance has no money, and the municipal level can basically maintain the salaries and benefits of civil servants. At the county level, teachers and civil servants are in arrears every year, and they are eager to let college and technical secondary school graduates who retire early at the age of 55 and new graduates within three years of employment are laid off in advance. You know, in the central government, a mixed director may only take three or five years, and in the local, a deputy county magistrate may take half a lifetime.
Since then, it has been a "shocking" national audit report year by year, which makes people feel that the central ministries and commissions are indeed rich. The illegal funds audited by almost every ministry are tens of millions of yuan every year, and the disposable funds that are not illegal are even more.
The subsequent release of 20 billion yuan of corrupt funds per year for "running money" will inevitably make people feel cold. Some people say that local officials in the United States can't go to Washington, but Chinese officials can't go to Beijing. Because the power and money are in Beijing, you have to go if you want money. As Li Jinhua, the Auditor General of the National Audit Office, pointed out: "Some offices in Beijing are for the purpose of running the 'department' and 'money'." Running is next to a foot, and there is also a bag. You have to take the bag to run. This "bag" is a "sky bag", which is rich in content and has everything. Last July's "looking" pointed out that the "grey funds" used by offices in Beijing every year to unblock relations are more than 20 billion yuan. The lack of transparency of central transfer payments has become one of the reasons for the "running of money" of various offices in Beijing.
In fact, the rapid growth of institutions in Beijing is in line with the historical evolution of central and local decentralization, especially after the reform of the central and local tax system in 1994. By 1991, there were only 186 offices in Beijing at or above the municipal level. Since then, the Beijing Office has grown at an alarming rate. According to rough statistics, in Beijing, in addition to 52 offices above the sub-provincial level, there are 520 municipal and more than 5,000 county-level offices. If you add the liaison offices of various associations, enterprises and universities, there are more than 10,000 institutions in Beijing.
Further research will find that the central and local tax-sharing reform, which began in 1994, has greatly changed China's economic pattern and the socio-economic rights of citizens. "Running money" is just a small microcosm. After the tax-sharing system, most of the taxes with stable tax sources, a wide tax base and easy collection are transferred to the central government. Consumption tax and customs duties are classified as central fixed income; enterprise income tax is divided into the central and local governments according to the subordinate relationship of taxpayers; value-added tax is divided between the central and local governments according to the ratio of 75:25.
In the year after the implementation of the tax-sharing system, the central government's fiscal revenue increased by 200% over the previous year, and the proportion of the country's total fiscal revenue rose sharply from 22% in the previous year to 56%, but the proportion of fiscal expenditure in the country's total expenditure increased by only 2 percentage points over the previous year. Since then, from 1995 to 2004, the central fiscal revenue accounted for an average of 52% of the country's total fiscal revenue, but the fiscal expenditure accounted for only 30% of the total national fiscal expenditure.
While the proportion of local fiscal revenue in the country's total revenue is decreasing, the proportion of expenditure is increasing. By 2004, local fiscal revenue accounted for about 45% of the national total fiscal revenue, but fiscal expenditure accounted for about 72% of the national total fiscal expenditure. In that year, the central government's fiscal revenue accounted for about 55% of the country's total fiscal revenue, but the central financial expenditure on education was 21.964 billion yuan, while the local financial expenditure was 314.630 billion yuan, more than 14 times that of the central government; social security subsidies and local financial expenditure was nearly 7 times that of the central government; and the expenditure on supporting agriculture was 10 of the central government. Double.
In addition, according to the survey of the Development Research Center of the State Council, the central government bears only 2% of the compulsory education funds in rural areas, 11% at the provincial and local levels, 9% at the county level, and 78% of the funds at the township level. In fact, it is actually borne by the majority of farmers. This has formed the so-called "central treat, local pays the bill" situation.
While the central government collects part of the tax power in the province, the local government is also going up and down. The provincial government's fiscal tax revenue is received from the provincial government, while the municipal level receives the county and township fiscal tax revenue from the municipal government. As a result, since the reform of the tax-sharing system in 1994, the concentration of China's government's financial power has continued to increase. Relevant data show that the proportion of central fiscal revenue in national fiscal revenue has increased significantly from 22% in 1993 to 54.9% in 2002, and the financial resources of provincial governments have also increased from 16.8% in 1994 to 28.8% in 2000, and the financial power of local governments below the provincial level is only remaining. It is less than 17%, but it bears 80% of the expenditure on people's livelihood and most of the public affairs.
In the era of Prime Minister Zhu, the direct consequence of the weak central government was the central fiscal deficit, and even one year, the money of the local government was borrowed to pay the salaries of the central ministries and commissions. However, the consequences of the tax-sharing system have greatly changed the political, economic and civil society rights of the whole society. In addition to the above-mentioned "running money", it is also manifested in the following main aspects:
I. Farmers are really bitter, the countryside is really poor, and agriculture is really dangerous
In 2000, an ordinary township party secretary in Hubei became famous. He was Li Changping, who wrote to Premier Zhu, "The peasants are really hard, the countryside is really poor, and the agriculture is really dangerous." This letter has attracted the attention of the central government to the issues of agriculture, rural areas and farmers. In December of that year, Li Changping was elected as the Person of the Year of Southern Weekend 2000. However, his personal fate is quite tortuous.
"We don't have other tax sources, and there are not many transfer payments. What if we don't collect money from farmers? Township teachers are not paid for more than a year. They have blocked the door of the government. That's what grassroots cadres said. On January 1, 2006, the agricultural tax was officially abolished. However, it was replaced by a vigorous landzheng yun dong. Up to now, the issue of land acquisition has become the main cause of mass events. In some places that cannot directly benefit from urbanization and land acquisition, "watering and raising fish" condones unplanned births and then fines have become a new source of financial resources for some local governments.
2. "The three new mountains" are on people's heads
In 2003, an article "Three Mountains on My Head" was amazing. Since then, "New Three Mountains" has become one of the most used phrases in society. People should remember its inventor, Zhao Mu, a famous essayist.
A basic feature of the tax-sharing system is the burden of local governments. Under the circumstances that the central ministries and commissions have seized the monopoly power of departments, the free access to the market is strictly controlled, and the free and fair competition of the market is beyond discussion, local governments have allowed education and medical institutions to charge and indiscriminately in the name of the market, and housing has also been pushed to the market, thus making the government its due responsibility. Most or more of the public responsibility is completely shifted to the society. For example, in the medical industry, 85% of the medical security provided by the government is spent on 8 million party and government cadres. As a result, living people are sent to crematoriums, hospitals are not saved, and parents or students commit suicide because their tuition fees are too high. The prices of public utilities such as water, electricity and gas have also soared again and again.
III. GDP worship and environmental damage and pollution
An iron-clad official. Under the condition that local people cannot determine the fate of officials, attracting investment at all costs has become the main task of local governments. Even many places give indicators to courts, procuratorates and every civil servant or even teacher, and require the procuratorate to issue documents to open up some economic criminal activities. So far, the natural ecology and social, political and legal ecology of some places have been seriously damaged. Many local officials do not hesitate to develop the local economy with the attitude and way of smashing their children's jobs. After I leave, I don't care about the torrential floods, environmental pollution and destruction are shocking. Local economic growth has grown, but local people not only cannot benefit from it, but have become the most direct and long-term victims of environmental damage and pollution.
The State Environmental Protection Administration and the National Bureau of Statistics jointly released the China Green National Economic Accounting Research Report 2004 to the media on September 7, 2006. The research results show that the national economic loss caused by environmental pollution in 2004 was 511.8 billion yuan, accounting for 3.05% of GDP that year. The cost of virtual governance was 287.4 billion yuan, accounting for 1.80% of GDP that year. Pan Yue, deputy director of the State Environmental Protection Administration, and Qiu Xiaohua, director of the National Bureau of Statistics, pointed out that due to departmental limitations and technical restrictions, the calculated cost of loss is only part of the actual resource and environmental cost. This accounting does not include the cost of ecological damage in the cost of natural resources and environmental degradation, but only calculates environmental pollution. Dyeing loss. The cost of environmental pollution loss is only accounted for 10 of them, and there are undervalued and missing items. Pan Yue and Qiu Xiaohua jointly introduced that the complete green national economic accounting should include at least five major natural resource consumption and reduction costs (arable land resources, mineral resources, forest resources, water resources, fishery resources) and two major environmental degradation costs (environmental pollution and ecological damage). Due to the limitation of basic data and technical level, this accounting does not include the cost of ecological damage in the cost of natural resources consumption and environmental degradation, but only calculates the loss of environmental pollution. The cost of environmental pollution loss includes more than 20, and only 10 of them are counted in this accounting (health, agricultural and material losses caused by air pollution, health, industrial and agricultural production, people's living and polluting water shortage losses caused by water pollution, and economic losses caused by solid waste encroachment and land, etc.), groundwater pollution, soil Important parts such as soil pollution are not involved. Generally speaking, the result of this accounting is only part of the whole result. Moreover, there are still undervalued and missing problems among the 10 losses that have been calculated. Even so, the loss has accounted for 3.05% of GDP, which is a staggering number, indicating that the environmental situation is very serious.
In addition to pollution losses, this accounting also accounts for pollutant emissions and treatment costs. The results show that if all the pollutants emitted from the point source into the environment in 2004 are treated under the existing treatment technology level, a one-time direct investment of about 1.08 billion yuan is required, accounting for about 6.8% of the GDP of that year. At the same time, an additional governance operation cost of 287.4 billion yuan (virtual governance cost) needs to be spent every year, accounting for 1.80% of GDP that year.
IV. The deprivation of the people by the real estate movement
In 1994, the tax system left a way for local governments to borrow land to make money - the land transfer money was returned to the local government, thus laying the groundwork for the continued hot real estate market and the unretied land acquisition and demolition movement. The survey of the Development Research Center of the State Council shows that land transfer has accounted for more than 60% of the extrabudgetary revenue of local finance. Under this system, through land acquisition, local governments take the land from farmers at a low price of tens of thousands of yuan per mu, and transfer it through auctions and other means, and the land price has increased by dozens or more than hundreds of times. The financial resources of local governments have been enhanced, and the rent-seeking of officials has become crazy (the cost of rent-seeking accounts for 3% to 5% or even higher of the total cost of real estate). In urban demolition, the interests of the people are also not guaranteed. In this process, people were deprived of low compensation fees, high housing prices and no housing social security.
How to collect taxes and how to manage money is a matter of life and death for a country. If it is well managed, the minimum amount of money can also make the people live and work in peace and contentment, social stability and peace, and sustainable economic development. If the management is not good, no matter how much money there is, it will lead to the country to the collapse of the mountains and rivers and the people's grievances. Therefore, how to formulate tax laws and the review of financial budgets is almost one of the most fundamental tasks for parliaments. Our National People's Congress is almost a shopkeeper in this regard. Many major reforms in China's history that do not change the system are almost at the level of how to divide money between the central and local governments. Looking at the previous reforms in Chinese history, we should not think that the central government's gathering money is its own responsibility, and in the end, they have also entered the difficult dead end of people's livelihood and are forced to push it all over again.
But decentralization within the government is far from enough. If the power has only an upper limit and no bottom line, if the responsibilities of governments at all levels and their respective scope of taxation cannot be included in the strict rule of law, and let them negotiate and solve it internally, the higher government can delegate power today and naturally collect power tomorrow, and the disorderly taxation will also fall into the cycle of chaos. Self-propulsion.
The dispute over collection and management under the tax-sharing system
In mid-December 1993, the central government issued a "Decision on the Implementation of the Tax-sharing Financial Management System", which divided a tax institution that was originally specialized in tax collection and management into national tax and local tax. Since then, the national and local taxes have been separated and go their separate ways.
Since the establishment of national and local taxes, after more than 10 years of operation, the contradictions between the two sets of collection and management institutions have piled up day by day. People engaged in local tax collection and management said that the business they are engaged in is a "tax-grabbing" struggle with the national tax collection and management institutions at the same level.
In the central province of Jiangxi, Tang Zherong, a second section of the local tax bureau in Shangrao City, a prefecture-level city, said, "The local tax bureau can't compete with the IRS. We are a vulnerable group."
Pick up sesame seeds and hold watermelon
The difficulties of local tax are first manifested in the daily collection and management of local tax, that is, there are many taxes and small taxes; the tax sources are scattered and unstable; the cost of collection is too high. Xu Zhigang, director of Shangrao Local Taxation Bureau, said that local tax collection and management is compared with national tax collection and management. One is to pick up sesame seeds and the other is to hold watermelons.
In terms of the number of taxes, there are 12 local taxes. If some legal taxes and fees levied by the central, provincial and municipal governments are included, there are more than national taxes. However, the actual situation is that the tax base of these taxes is relatively small and difficult to control. For example, for the collection of vehicle and vessel tax and ordinary business tax, the tax sources are scattered, and the tax ranges from dozens of yuan to 100 yuan. The collection cost is very high. Sometimes it is even necessary to entrust multiple departments to collect and manage, resulting in countless tedious links.
At present, there is a general view in the local tax system that although it is not extreme, it can reflect some practical problems, that is, "the easy tax is allocated to the national tax, and the difficult tax is left to the local tax".
According to the introduction, such differentiation did not exist earlier. At the beginning of the establishment of the institution in 1994, there were 17 fixed taxes belonging to local taxes, and now there are 12 left. The ones that have been cut down or suspended and the tax amount is relatively large are local taxes. For some or new taxes, the national tax is often involved in it and shared with the local tax. Some simple and efficient taxes are directly transferred to the national tax.
For example, in personal income tax, the interest income from personal bank savings is collected by the national tax. These taxes do not need to be sent by the national tax department. The banking system will automatically deduct the interest income of depositors and submit it to the national tax. In business tax, such as the catering industry and other service industries, the difficult general business tax is levied. At present, all It is levied from local tax, and the business income generated by the purchase and sale, wholesale and retail of goods is changed from national tax to value-added tax. Those industry taxes that can issue "big votes" in the industrial and commercial fields are under the name of national tax. A local tax official said that almost any large amount of tax will be allocated to the national tax, which usually only requires a document from the Ministry of Finance.
For example, the total local tax revenue of the city last year was 1,9553.7 billion yuan, and the total income of national tax reached 2,013.9 billion yuan. The three main taxes of national tax, value-added tax, consumption tax and enterprise income tax, were 1.9 million, 240.9 billion and 218.7 million yuan respectively; while the main tax of local tax Among them, in addition to the enterprise income tax and personal income tax reaching 300 million yuan respectively, the resource tax and land value-added tax add up to 200 million yuan, which is only a fraction of the total value-added tax managed by the national tax.
Compared with income, the operating cost of local tax collection and management is further amplified. Ye Lingfa, the Collection and Management Section of the Local Taxation Bureau of Shangrao City, told reporters that the input of human costs is disproportionate to the total amount of tax. In Shangrao local tax, there are currently 700 people responsible for front-line tax collection, 325 people engaged in front-line tax collection and management in rural areas alone, accounting for 56% of the total personnel, and 52 rural grass-roots branches, accounting for 70% of the city's local tax management agencies.
Diverences in collection and management
One of the biggest differences appears in the collection and management of corporate income tax.
In the early stage of the reform of the tax-sharing system, corporate income tax was not a shared tax between the central and local governments. At that time, the enterprise income tax was divided according to the affiliation of the enterprise. The income from central enterprises was collected and managed by the national tax institutions, and the income from local enterprises was collected and managed by the local tax institutions.
At the end of 2001, the State Council issued a notice to implement the reform of corporate income tax income sharing from 2002. On the premise that the income from central enterprises is still subject to the collection and management of national tax, it is decided that the income from local enterprises shall be shared by the local government and the state. According to the notice, from the date of implementation of the reform plan in 2002, the income tax of newly registered enterprises and institutions shall be collected and managed by the State Taxation Bureau.
A local tax official said that such a decision has caused continuous differences in the collection and management of national and local taxes. According to reports, the central government issued six explanatory documents on the definition of enterprise income tax standards, trying to divide the national tax and local tax on how to collect enterprise income tax, tax source attribution and other issues, but the expression is not clear and the content of the text is also contradictory.
In terms of local tax, it is believed that new enterprises start from scratch. If the old enterprise is funded by new enterprises, it is an investment and an affiliated enterprise, and should not be managed by the national tax. Ge Hong, from the branch directly under the Shangrao Local Taxation Bureau, said that the institutional establishment and business derivation of enterprises cannot be regarded as new enterprises, and income tax is not levied by the national tax. However, the two sides of the national and local taxes often have their own reasons for this.
According to the document of the State Administration of Taxation, if the parent company or shareholder of the newly established enterprise originally pays the local tax, the income of the new enterprise will still be collected by the local tax. In order to find out whether the parent company of many foreign-invested enterprises pays local tax or national tax at the original place of registration, Ge Hong also needs to squeeze some time to investigate and collect evidence in other provinces to ensure that the tax sources of these enterprises do not "outflow".
A person from the Collection Management Section of Shangrao State Taxation Bureau accused local tax of unfair competition. He said that according to the new national policy, after 2002, the corporate income tax on the service and tertiary industries will be collected by the IRS, but the local tax bureau controls invoices in these fields. When taxpayers go to issue invoices, the local tax bureau will put pressure on the taxpayers, "They are clearly required to pay income tax at the local tax, but it is originally a tax levied by the IRS."
It is reported that during the recent negotiation of Shangrao National Land Tax on the collection and management of corporate income tax, they even used lawyers to interpret the tax general documents, and only entered the judicial process. In a neighboring prefecture-level city, violence has recently been caused by the same contradiction in the collection of corporate income tax. The local IRS not only hung its strong propaganda banner at the door of the local tax bureau, but also dispatched the economic investigation team of the local public security bureau to arrest the heads of the two real estate development enterprises that paid corporate income tax in the local tax bureau. This deterred many developers and went to the IRS to pay income tax.
In the face of this situation, an executive vice mayor in charge of finance and taxation in the local government proposed to both parties at the coordination meeting that since the corporate income tax is a shared tax, can taxpayers voluntarily pay it to either party's collection agency? No matter who collects it, it will eventually enter the treasury, which is automatically divided into proportions by the system. However, the IRS refused to accept the proposal.
Ge Hong said that if the taxpayers are willing and out of a one-stop business, all taxpayers will enter the local tax bureau, at least in the field of housing enterprises, because all tax subjects of housing enterprises are collected by the local tax bureau except for enterprise income tax.
A local tax official said that the current contradiction between the two sets of collection and management agencies is caused by human factors, which has led to the disorder of the operation of the tax-sharing system. According to the original design goal of the tax-sharing system, there is a clear division between national tax and local tax, and well water and river water do not violate each other.
Tang Zherong, the second department of tax administration in Shangrao City, said that as a tax administrator, I can't understand why the policy changes so fast. In that year, each tax had its own, which had been unloaded into several sections in a blink of an eye, which was cross-examined and managed by the two institutions, and the competition may be even worse in the future.
The strongest response from the local tax department is that the tax division has not risen to the level of legislation, that is, this kind of fiscal centralization is not achieved through legalization, so it is very arbitrary. According to the provisions of the tax-sharing system, the central government has the leading tax power, and only the central government has the power to set up taxes. Legal procedures will be initiated when the tax is established, but in the process of specific division, it is specifically defined by the finance and taxation department through its own administrative documents. This can easily lead to tax disputes between central departments and local governments. A local tax official said, "In the division of tax sources, the central government does not legislate and legal procedures do not go. With a document of the Ministry of Finance, many tax sources are returned to the national tax."
The official said that due to the intervention of the will of the department, a kind of differentiation is accompanied by the tax division system, that is, the corporate income tax stock of the local tax bureau has become limited, and some enterprises before 2002 may go bankrupt, restructuring or close down; the increment of corporate income tax of the IRS is unlimited, and new enterprises will become more and more More. Compared with the continuous expansion of the central tax system, the establishment of the local tax system has been delayed.
In addition, several local tax officials interviewed by the reporter also said that tax division does not have to be divided into institutions. If there are more institutions, the disadvantages of confusion of functions, duplication of institutions and long management will appear. In essence, this is a violation of the principles of simplicity and efficiency of tax collection and management. In view of the inefficiency and unfairness of the repeated establishment of institutions, the domestic academic community also has the opinion that the two sets of expropriation institutions should be merged sooner or later.
Ye Lingfa, of the Collection and Management Section of the Local Taxation Bureau of Shangrao City, said that the construction cost of only one institution will double the pre-tax ratio after the tax is divided. In the past three years, the Shangrao Local Taxation Bureau has invested 16.48 million yuan from the city to the county to build an information collection and management system, and the same is true of national taxation. If the institutional settings do not overlap, these costs can be saved. The merger of state and local taxes can save the cost of collection, management, operation and construction, and greatly reduce the burden of public support for government administrative agencies.
The integration of institutions does not mean that the reform of the tax-sharing system has failed or regressed. Ye Lingfa said that a set of collection agencies can also ensure the efficiency of tax sharing. When all taxes are collected by one institution, the system will automatically divide the central and local areas when they are put into storage. In this regard, the developed information construction has reduced the intervention of human factors, and there is no need to worry about local interception.
If it cannot be merged, local tax officials suggest that in order to avoid "fighting" over the collection of enterprise income tax, it is necessary for the central government to consider the implementation of the division of tax collection according to the main tax collection method and reform the tax collection and management mechanism. The principle is that the main tax is levied by who collects the main tax, then the enterprise income tax will be levied.
For example, at present, the three main types of local tax are enterprise income tax, personal income tax and general business tax. The bills of these main taxes are all local tax management. When enterprises pay tax, local tax can deduct income tax at the same time to achieve the purpose of deducting tax by ticket. When the IRS levy the main tax, such as value-added tax, it can also deduct the enterprise income tax together, and there will be no differences.
In addition, it can also be considered that according to the initial division method of the 1994 tax division, the central tax is collected by the national tax, the local tax is collected by the local government, and then transferred to the treasury. The treasury system is uniformly allocated to the central treasury and the local treasury in a shared ratio.
Wu Huangming, director of the Inspection Bureau of Shangrao Local Taxation Bureau, told reporters that it is necessary to optimize the structure of the local tax system to prevent the declining local tax sources, which requires the joint efforts of the central and local governments. At the central level, local subject taxes should be increased, which should be achieved through tax reform. For example, he said that social insurance premiums will be changed to taxes or some new taxes will be levied when the time is ripe, such as inheritance tax, property tax, etc., and the central government will hand over these new taxes to the local tax department for collection and management, which can ensure the stability of local tax sources.