(Yicai Global) Aug. 23 -- China has been pushing fiscal and tax system reforms in recent years.
Some scholars hold such reforms will next focus on a consumption tax following the replacement of the business tax with a value-added tax.
China's fiscal and tax system reforms will next focus on consumption tax reform, Jia Kang, former head of the Chinese Academy of Fiscal Sciences and chief economist at the China Academy of New Supply-Side Economics, said at a conference in Shenzhen yesterday.
A consumption tax is a typical indirect tax on consumer goods spending. The Chinese government has previously called for adjusting the scope of consumer goods subject to consumption tax, links and tax rates and imposing a consumption tax on high-energy-consuming, high-polluting products and premium consumer goods. On the future direction of consumption tax reform, the Master Program for Deepening Fiscal and Tax System Reform approved on June 30, 2014, calls for "improving the consumption tax system."
"Resource tax reform will also be discussed. In the longer term, resource products will become increasingly precious and government regulation will remain strict. Also, the property tax and individual income tax may also come under discussion," Jia added.