A Study of the Taxation Reform during Economic Transition Period in Mainland China.

• Main Authors: Huang Li-Kun, 黃麗鯤
• Other Authors: Guo Jiann-Jong
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/90216043804161251756

碩士 === 淡江大學 === 大陸研究所碩士在職專班 === 91 === Abstract: At the 3rd plenum of the 13th National Congress of the Communist Party of China (CPC) in December 1978, a major reform policy was declared, “The implementation of economic reform, there is required the flexibility and activities domestically, while opening-up internationally, which played up the prelude to the reform of economic institution in mainland China, signaling the shift of the emphasis of the CPC’s task into socialist economic infrastructure. At the 3rd plenum of the 13th National Congress of the CPC, it was determined that an economy of freely traded “commodity” was a precondition essential to the realization of modernization of the economy in mainland China. Attempts were to be made, through reform, to realize the separation of politics and business, whereby enabling businesses to actually become relatively independent economic entities, possessing sole determination as to how the business is to be operated and solely responsible for the profits or losses, thereby was prompted in full scale the reform of economic institution in mainland China. The taxation reform of 1994 was the largest ever since the founding of the current political regime of mainland China, and also the one that exhibited the furthest-reaching influence. This reform not only solved the several problems of the original tax system, but set out a primary step for establishing a new revenue system adapted to the reform as well as the need for further development of socialist market economy. The 1994 reform, however, still exhibited a revenue structure lacking reasonableness, a revenue system falling short of completeness, and inadequate practices of collecting as well as allocating revenues, which necessitates some further steps of reform to perfect the then revenue system. And these are exactly the areas where the author of this thesis has concentrated his study on — from various pertinent perspectives, whereby finding the solutions as well as answers thereto. This thesis has been dedicated to the study of and, accordingly, encompasses the following issues: 1. Whether a system of collecting “revenues through taxation” ever exists in the communist society of mainland China? Thereafter is furthered the exploration of the function and role of “revenues through taxation” in the course of economic transition. 2. How the mechanism of revenues through taxation promotes economic growth as well as the functions and mechanism of revenues through taxation works to stabilize economy during the economic transition of mainland China. 3. What functions the system of revenues through taxation serves to the reform of state-run enterprises in the course of economic transition of mainland China. 4. The effects served, and the limitations posed, by the system of revenues through taxation to and the promotion of the development of knowledge-based economy, the regulations of revenues and allocation thereof, and the coordination of economic development of territorial economy. 5. The necessity as well as the potential opportune timing of further perfecting revenue system in mainland China; and how mainland China is, after its entry into the World Trade Organization (the WTO) should adopt steps to reform its current revenue system, so that it may be compatible with the WTO. This thesis comprises the following six chapters. Chapter One “Introduction” sets out to delineate the motives as well as objectives, scope of study as well as demarcation thereof, methods as well as framework, and literature review as well as exploration of pertinent theories. Chapter Two “The Economic Transition in Mainland China” investigates the evolutionary process of mainland China’s revenue system throughout the various stages of political and economic institutions. Special attention is drawn on the economic transition of mainland China through the re-direction to socialist market economy rendered by Deng Xiaoping after his 1992 Tour to the South and the release of his Talk during the tour, the major reform of revenue system of 1994, and chaotic scenario incurred by “taxes” and “fees.” Chapter Three “On the Structure and the Function of Revenue System” analyzes and further elaborates on the several issues of economic reform in relation to revenue system, functionalities of the government and revenue burdens, economic stability as related to the function of revenues, economic growth and function of revenues, respectively, in the course of economic transition. Chapter Four “Revenue Strategy and Revenue Mechanism in Economic Transition” attempts to investigate various aspects of revenue mechanism: knowledge-based economy in relation to revenue mechanism in the course of economic transition, the reform of state-run enterprises and revenue policies, revenue allocations and revenue policies, as well as regional development and revenue policies. Chapter Five “Review of Current Revenue System of Mainland China” explores and evaluates the various issues of the patterns of taxation reform in countries undergoing economic transition, the major trend of taxation reform in various countries around the world, the impact of mainland China’s entry into the WTO on its current revenue system of, the direction of development of current taxation reform in mainland China. And finally Chapter Six drawn up the Conclusion on the issues studied.