Hello! The formation and characteristics of China's current tax structure Since the founding of New China, China's tax system has undergone many major reforms to adapt to the development and changes of social, political and economic conditions in different periods, but the leading characteristics of turnover tax in the tax structure have never changed. The evolution of China's tax structure has gone through three stages. The first stage is from the early days of the founding of the People's Republic of China to before the Third Plenary Session of the Eleventh Central Committee of the Party. At this stage, China's tax system implements a "multi-tax and multi-levy" tax system with turnover tax as the main body. At that time, turnover tax revenue accounted for more than 80% of the total tax revenue. Under the background of planned economy in which state-owned enterprises account for an absolute proportion and profits are turned over, this tax structure can basically meet the financial needs of the government, but it excludes the role of taxation in regulating the economy. The second stage is from the Third Plenary Session of the Eleventh Central Committee of the Communist Party of China to before the 1994 tax reform. The reform of China's economic system has gradually changed the situation that the state-owned economy is "outstanding". In order to adapt to the change of tax source pattern, China government carried out the reform of "changing profits into taxes" in two steps in 1983 and 1984, collecting income tax for state-owned enterprises for the first time, and reforming the original industrial and commercial tax system. After "changing profits into taxes", the proportion of income tax in industrial and commercial tax in China has risen rapidly. From 65438 to 0985, the proportion of income tax reached 34.3%, basically forming a set of composite tax with turnover tax as the main body, income tax as the supplement, and other taxes cooperating with each other. The third stage is the current tax structure formed after the reform of 1994 tax system. The current tax system in China was formed on the basis of the industrial and commercial tax system reform from 65438 to 0994. The focus of this reform is to adjust and optimize the tax structure. On the basis of a comprehensive introduction of value-added tax, a turnover tax system with value-added tax as the main body and consumption tax and business tax cooperating with each other is established. Uniform laws and regulations on domestic enterprise income tax and individual income tax have been promulgated and implemented. After the reform of 1994 tax system, the number of taxes in China has been reduced from 32 to 18, and the tax system structure has been simplified and tends to be reasonable. At present, China's tax system structure is similar to that of most low-income countries, and it is characterized by turnover tax. According to statistics, from 65438 to 0996, turnover tax accounted for 7 1% of the total tax revenue, and income tax accounted for 18%, of which personal income tax accounted for 2.7% and other taxes accounted for about 1 1%. This tax structure is basically in line with the development and management level of China's productive forces. However, it must be pointed out that the tax reform of 1994 strengthened the tax structure with turnover tax as the main body, and emphasized the role of value-added tax in tax design, which made the proportion of this tax too large, while the income tax with inherent stability accounted for a low proportion of the economy, especially the personal income tax. This makes China's tax structure inflexible. When the economy fluctuates, tax revenue not only cannot meet the government's expenditure demand, but also limits the role of tax in regulating the economy. Thanks for reading!