An Assessment of China’s New Round of Reform of the Fiscal and Taxation Systems

Gao Peiyong (高培勇) and Wang Dehua (汪德华)
Institute of Economics, the Chinese Academy of Social Sciences (CASS), Beijing, China
National Academy of Economic Strategy, CASS
Abstract: Based on the Decisions of the CPC Central Committee on Some Major Issues
Concerning Comprehensively Deepening Reforms and the Overall Plan on Deepening
Fiscal and Tax Reforms, this paper presents a systematic assessment of the progress of
China’s new round of fiscal and tax reforms from November 2013 to October 2016 with
the following findings. Reform of the budgetary management system has yielded initial
results yet remains in the preliminary stage. While progress has been made in reforming
indirect taxes, the reform of direct taxes is slow and presents a major obstacle. Despite
breakthroughs, the progress of public finance reforms remains slow and impedes reforms on
other fronts. Fiscal and tax reforms are uneven and should be implemented in coordination.
Fiscal and tax reforms should more vigorously support overall reforms.
Keywords: fiscal and tax reforms, tax system, budget management, reform assessment,
modern fiscal system
JEL Classification: H20, H60, H70

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