新一轮财税体制改革：任务、脉络与共识——深化改革学习系列一

Core Viewpoint - The article discusses the structural reforms in China's tax system, focusing on the need to optimize the tax structure, enhance local tax systems, and improve the fiscal relationship between central and local governments. Tax Structure - The tax structure refers to the composition of tax types and their respective proportions within the tax system. Direct taxes, which are non-transferable and equitable, such as income tax and property tax, are contrasted with indirect taxes, which are transferable and efficiency-oriented, like value-added tax and consumption tax. Over the past decade, the proportion of indirect taxes has decreased by nearly 10 percentage points, still accounting for about 60% of total taxes [2][9]. - In 2023, the consumption tax reached 1.61 trillion yuan, making up approximately 9% of total tax revenue, with over 98% of it derived from "tobacco, alcohol, oil, and vehicles" [2][11]. Consumption Tax Reform - The consumption tax is primarily levied at the production stage, and there is a proposal to shift to a consumption-based principle, which would benefit consumer provinces while impacting production provinces negatively [2][11]. - The consumption tax has 15 categories, with the highest rate reaching 56% for tobacco products. The revenue from consumption tax is currently classified as a central tax, while internationally, it is often shared between central and local governments [2][12][19]. Individual Income Tax - The individual income tax, which is the fourth largest tax type in China, reached 1.47 trillion yuan in 2023, accounting for about 8% of total tax revenue. The tax reform aims to improve income distribution and increase the proportion of direct taxes [3][41]. - The current individual income tax system combines various income types and applies a progressive tax rate ranging from 3% to 45% [3][44]. Fiscal System - The fiscal system addresses the financial relationship between central and local governments, focusing on the division of responsibilities and financial powers. The current system has been criticized for inefficiencies and a lack of clarity in responsibilities [4][49]. - Experts suggest enhancing the central government's fiscal responsibilities while reducing overlapping responsibilities with local governments to improve efficiency [4][55]. Local Debt and State-Owned Enterprises - Local government debt is expected to peak before 2028, necessitating a balance between investment stability and risk prevention. The article emphasizes the need for state-owned enterprises to increase their contributions to public finances [5][6]. - The gradual increase in retirement age is proposed as a solution to the pension funding imbalance, reflecting trends seen in developed countries [5][6].