CCIEE Holds 71st Monthly Economic Talk

On the morning of May 19, 2015, CCIEE held the 71^st Monthly Economic Talk at the Multifunction Hall, 2F Media Center Beijing. Under the theme of Foci and Difficulties of Deepening the Reform of Fiscal Revenue and Tax Distribution System, the meeting was presided over by Mr. Liu Kegu, Deputy Director of CCIEE Academic Committee. Mr. Jia Kang, Vice Chairman of the Society of Public Finance of China (SPFC), Mr. Gao Peiyong, Director of National Academy of Economic Strategy of Chinese Academy of Social Sciences(CASS), and Ms. Liang Yunfeng, a researcher of CCIEE Department of Economic Research, delivered keynote speeches.

Mr. Liu Kegu held that the premise of fiscal and tax system reform is a stable macro tax burden, i.e., a constant ratio of tax revenue to GDP, as advanced at the 3^rd Plenum of the 18^th CPC Central Committee. The benchmark ratio in 2012 was 31.75% of 2012.Mr. Jia Kang argued that in the course of comprehensive reform, the 18^th CPC National Congress and the 3^rd and 4^th Plenums of the 18^th CPC Central Committee constitute a crucial logical chain linking national modernization governance, modern market system, modern public finance system and modern political civilization. Under the overall framework, the fiscal and tax reform should balance the relationship between the central and local governments and within the entire system of political power to the extent of alignment between the governments’ administrative authority and spending responsibility. Meanwhile, it should streamline the institutional framework through division of income and distribution of financial resources.Mr. Gao Peiyong claimed that by defining the fiscal and tax reform as the breakthrough point and mainstay of the general arrangement for comprehensively deepening reform, China hopes that the reform as well as the establishment of modern public finance system will pave the way for the all-round development of modern national governance system and capacity to accelerate the whole national modernization governance process.Ms. Liang Yunfeng pointed out the serious problem of double taxation in China’s real estate industry. Given the overlapping of business tax and VAT (more specifically, land VAT), she suggested that, on the basis of tax abatement, China should establish the local main tax system, accelerate legislation on real estate tax, and promote relevant reform in due course.

At the end of the talk, experts took questions from the audience and media. Researchers of CCIEE and representatives from member entities of CCIEE, enterprises, institutes and the media attended the meeting.