Abstract: Based on deeply understanding the spirit of the Third Plenary Session of 18th National Congress of CPC, this paper discusses the basic goal and routine of a new round of fiscal and taxation reform from strategic perspectives. The conclusions of this paper are as follows. Different from fiscal and taxation reform in 1994, the basic goal of this round of reform is to build a modern fiscal system matching national governance system and governance capacity. First, the government should optimize taxation structure from the perspective of raising the proportion of direct tax. Second, fiscal expenditure scale should focus on stabilizing tax burden while expenditure structure gives priority to the spending on people’s livelihood. Third, it is essential to implement “full-covered” budget management. Fourth, we should insist on and advance the direction of “tax-sharing” system, rather than partly going back to “money-sharing system” under the constraint of current situation.
Keywords: Fiscal and Taxation Reform, National Governance, Tax Structure, Social Fairness, Budget Management, Fiscal System
source:Finance & Trade Economics ,No3,2014