Research on the Reform of Consumption Tax from the Perspective of the Postponement of Collection Links

Abstract

Against the backdrop of tax reduction and fee reduction, China proposed the reform of adjusting the collection link of consumption tax and transferring consumption tax revenue to local governments in 2019. So far, China has clarified the next direction of consumption tax reform: moving the collection link back to the wholesale or retail stage to expand local revenue sources, guide consumers to regulate their consumption behavior, and improve the consumption environment. Combining the current development status of consumption tax and the existing problems in its collection link, this paper elaborates on the necessity of postponing the collection link of consumption tax, and analyzes its feasibility—such as the support from local governments and consumer goods manufacturers. The implementation of policies related to the postponement of consumption tax collection may lead to some problems that urgently need to be solved, including increased tax costs, difficulties in tax collection and administration, and the broken balance of interests among governments, enterprises, and consumers. This paper also puts forward reasonable suggestions for the optimization of the postponement of China’s consumption tax collection link from the perspective of different subjects, taking into account the balance of interests of the government, enterprises, and consumers, so as to make the consumption tax policy more perfect and reasonable, create a standardized and orderly consumption environment, and give full play to the regulatory role of consumption tax in economic life.