- The Standing Committee of the National People’s Congress has released the legislative work plan for 2024, with the third review of the VAT law scheduled for December.
- Experts believe that the long interval between the second and third review of the VAT law may indicate major reforms accompanying the legislation.
- There is room for optimization in areas such as tax rate simplification, tax exemption for service industry exports, and expanding the scope of taxable services under the VAT system.
- The traditional “land finance” model is unsustainable, and local government revenue increasingly relies on taxes, highlighting the need to strengthen the local tax system.
- Pushing for reforms in consumption tax and real estate tax can supplement local tax revenue sources and improve the local tax system.
- The delay in the reform of consumption tax is attributed to various factors such as revenue sharing between central and local governments and technical challenges in tax collection.
- Exploring the shift of consumption tax collection to the local level can stabilize local revenue sources and encourage consumption, benefiting local economies.
- The legislation for real estate tax is currently on hold, but the direction remains unchanged, focusing on building a stable revenue source for local governments and promoting healthy development of the real estate market.
- The timing for advancing real estate tax legislation should be carefully considered to gradually implement changes and improve public services through tax revenue.
Source: wap.stockstar.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
