Book contents
- China’s Public Finance
- Endorsement on Back Cover
- China’s Public Finance
- Copyright page
- Dedication
- Contents
- Figures
- Tables
- Preface
- About the Author
- 1 An Overview of China’s Public Finance
- 2 The Fall and Rise of Government Revenue
- 3 Value-Added Tax, Consumption Tax, and Other Taxes on Goods and Services
- 4 Individual Income Tax Reforms
- 5 Corporate Income Tax in China
- 6 The Size and Structure of Government Expenditure
- 7 Infrastructure Development and Financing
- 8 Social Security Reforms
- 9 Healthcare Reforms
- 10 China’s Growing Local Government Debt
- 11 Fiscal Relationship between the Central and Local Governments
- 12 Fiscal Reform for Equitable and Sustainable Growth
- References
- Name Index
- Subject Index
3 - Value-Added Tax, Consumption Tax, and Other Taxes on Goods and Services
Published online by Cambridge University Press: 22 September 2022
- China’s Public Finance
- Endorsement on Back Cover
- China’s Public Finance
- Copyright page
- Dedication
- Contents
- Figures
- Tables
- Preface
- About the Author
- 1 An Overview of China’s Public Finance
- 2 The Fall and Rise of Government Revenue
- 3 Value-Added Tax, Consumption Tax, and Other Taxes on Goods and Services
- 4 Individual Income Tax Reforms
- 5 Corporate Income Tax in China
- 6 The Size and Structure of Government Expenditure
- 7 Infrastructure Development and Financing
- 8 Social Security Reforms
- 9 Healthcare Reforms
- 10 China’s Growing Local Government Debt
- 11 Fiscal Relationship between the Central and Local Governments
- 12 Fiscal Reform for Equitable and Sustainable Growth
- References
- Name Index
- Subject Index
Summary
Chapter 3 analyzes consumption-based taxes in China. The Chinese government now heavily depends on the consumption-type value-added tax (VAT) and the consumption tax, a special tax on specific goods such as alcoholic products, cigarettes, and automobiles. In addition, two additional taxes, urban maintenance and construction tax and the additional fee for education, also share the same tax base as the VAT. These consumption-based taxes account for more than half of China’s total tax revenue. Other taxes on goods and services, such as tariffs, vehicle purchase tax, resource tax, and environmental tax are also examined in this chapter. The advantages and disadvantages of consumption taxes are evaluated as well.Consumption taxes are favorable to savings and economic growth but are not favorable to income redistribution.
- Type
- Chapter
- Information
- China's Public FinanceReforms, Challenges, and Options, pp. 65 - 96Publisher: Cambridge University PressPrint publication year: 2022