What are the changes in China s tax reform in 2006?

1. Restructure the tax structure, abolish some unreasonable taxes (such as product tax), and replace them with taxes that are more in line with market-oriented reforms, such as levying value-added tax and standardizing consumption tax.

2. Re-divide ** tax, local tax, **local sharing tax. Make the best to obtain greater financial resources.

3. In order to protect the vested interests of provinces and cities (especially wealthy provinces and cities), a set of tax refund system has been designed.

The reform of the tax-sharing system was implemented in 1994. The reform of the tax-sharing system is a reform of the financial management system of the state according to the division of taxes and local revenues. The reform calls for a "three-point" tax rate:

That is, decentralization, taxation and division, through the division of tax power sources, the tax is divided into ** tax and local tax according to the type of tax, which effectively deals with the relationship between the power and the financial infiltration mode between the **** and the locality.

Decision on the Implementation of the Fiscal Management System of the Tax-sharing System" The people of all provinces, autonomous regions, and municipalities directly under the Central Government, all ministries and commissions, and all directly affiliated institutions: According to the decision of the Third Plenary Session of the 14th Central Committee of the Communist Party of China, in order to further straighten out the financial distribution relationship between the state and the localities, give better play to the functional role of the state finance, enhance the macroeconomic regulation and control ability, and promote the establishment of the socialist market economic system and the sustained, rapid and healthy development of the national economy, it is decided that Since 1 January 1994, the existing local fiscal contracting system has been reformed, and the fiscal management system of the tax-sharing system has been implemented for all provinces, autonomous regions, municipalities directly under the Central Government, and cities specifically designated in the state plan.

As a result of this reform of the taxation system and its subsequent gradual improvement, by the end of the 20 th century, China had initially established a taxation system that met the needs of the socialist market economic system.

Tax reform is the process of improving social welfare through marginal changes in the design and structure of the tax system. There may be many forms of reform of the tax system, including the rise and fall of tax rates, tax grades, tax thresholds or exemptions, and the positive changes in the tax base, as well as the introduction of new taxes and the abandonment of old taxes, as well as changes in the combination of taxes.

Legal analysis: On December 15, 1993, the "Decision on the Implementation of the Fiscal Management System of the Tax-sharing System" was issued, which determined that from January 1, 1994, the current local fiscal contracting system would be reformed, and the financial management system of the tax-sharing system would be implemented for all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan.

Legal basis: Decision on the implementation of the fiscal management system of the tax-sharing system》 Second, the guiding ideology of the reform of the fiscal system of the tax-sharing system (1) Correctly handle the distribution relationship between the government and the localities, mobilize the two levels, and promote the reasonable growth of national fiscal revenue. It is necessary not only to consider local interests, mobilize the enthusiasm of local governments in developing the economy, increasing revenues and reducing expenditures, but also gradually increase the proportion of fiscal revenues, appropriately increase financial resources, and enhance the ability of macroeconomic regulation and control.

To this end, it is necessary to appropriately answer more from the increase in fiscal revenue in the future, so as to ensure the steady growth of fiscal revenue. (2) Rationally adjust the distribution of financial resources between regions. It is necessary not only to help the economically developed areas to maintain a relatively rapid development momentum, but also to support the development of economically underdeveloped areas and the transformation of old industrial bases through the return of taxes and transfer payments to local governments.

At the same time, it is necessary to urge local governments to strengthen their restraints on fiscal expenditures.

The tax system is a country's tax system. The main types of taxes in the 1994 tax reform were: the reform of enterprise income tax, the reform of individual income tax, the reform of turnover tax, and the reform of urban maintenance and construction tax; Newly introduced land value-added tax, ** transaction tax, inheritance and gift tax; Abolish the salt tax, banquet tax, bazaar transaction tax, livestock transaction tax, special consumption tax, special oil burning tax, bonus tax, wage adjustment tax, urban real estate tax for foreign-invested enterprises and foreigners, and vehicle and vessel license tax.