[Title] Distribution Mechanism and Reform Strategy of Tax Income in Automotive Industry in China

[Journal] Taxation and Economy, 2016, vol.2, 1-9

[Author] Liu Zong-wei, Wang Yue, Hao Han, Zhao Fu-quan*

[Abstract] Taxation is one of important means for the government to regulate economy． The tax system reform of automotive industry will make contributions to supporting the realization of strategy of invigorating the country through automobiles． There are some deficiencies in income distribution of current automobile tax system: the imbalance of power of finance and authority between the central government and local government and between difference local governments． The local automobile manufacturers are scrambling to develop automobile manufacturing and ignoring the governance of negative social problems that cars bring about． The ideal tax system of automobile should not only promote the healthy development of automobile industry，but also ensure a harmonious and orderly society for automobile industry． The local areas with well-developed infrastructure could satisfy the development of automobile industry and meet the needs of convenient travel for the people，which is the important part of future intelligent transportation and city． The central government should make an overall planning for the automobile tax system from the macro global view and decentralize the tax authority． The local government should has a balanced power of finance and authority and provide better public service for the harmonious automotive society by making use of earmarking system．

[Key words] automotive industry; distribution of tax income; power of finance and authority; making use of earmarking

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