A Brief Discussion on the Changes of Tax System Since China’s Reform and Opening up (1978-2018)

Abstract

According to Chinese reform and opening up process, as well as fiscal and taxation’s differences at different stages, since 1978, China’s taxation reform could be divided into three stages. Every reform stage was carried out in the specific economic and political environment at that time, and a phased tax system was constructed. China’s Statistical Yearbook and the financial and taxation departments’ reports show that China’s total tax revenue and tax structure have changed greatly in the past 40 years. The successful experience of China’s tax reform is to adhere to the direction of socialist market economy, create a fair competitive environment for enterprise development, steadily implement it, and widely solicit public opinions. However, under the background of global economic integration and international tax reform, China’s tax reform should further increase the proportion of direct tax, focusing on the improvement of VAT, personal income tax, real estate tax and consumption tax, and realizing the internationalization of China’s tax system.