Group 1 - The core viewpoint emphasizes the importance of boosting consumption as a key strategy for expanding domestic demand, with the government prioritizing this in its work report [2] - Local governments face significant financial constraints due to accumulated debt and a downturn in the real estate market, which impacts their ability to implement consumption-boosting policies [2][6] - A recommendation is made to establish a positive incentive mechanism at the fiscal and tax system level to encourage local governments to promote consumption, aligning with the new stage of economic development in China [2][6] Group 2 - The structure of tax revenue in China shows that VAT, corporate income tax, consumption tax, and personal income tax are the top four tax types, with VAT contributing the most to local tax revenue [3] - In 2024, China's total tax revenue is projected to be 17.5 trillion yuan, with VAT accounting for 6.67 trillion yuan (38%) and consumption tax for 1.65 trillion yuan (9%) [3] Group 3 - International experiences suggest that reforms in VAT distribution should focus on transferring payments to consumption areas and improving the precision of these transfers [4] - The current VAT distribution mechanism in China is based on the production location principle, which has become less effective as consumption becomes the main growth driver [6][7] Group 4 - The EU's VAT reform experience highlights the transition from a production-based to a consumption-based tax system, which could inform China's VAT distribution reform [9][10] - The US sales tax system, which relies on state-level sales taxes rather than a unified VAT, provides insights into how differentiated tax rates can guide consumer behavior and promote healthy consumption [12][14] Group 5 - Recommendations for enhancing local government incentives to promote consumption include optimizing the VAT distribution mechanism and implementing a more precise compensation system for consumption areas [15] - Suggestions also include adjusting consumption tax rates to encourage green and healthy consumption, and linking consumption taxes to public services to create a positive cycle of tax revenue and consumer spending [16][14]