China’s Emerging Tax Regime: Local Tax Farming and Central Tax Bureaucracy
China like other transition economies needs to establish a tax system compatible with a market economy, in particular, an efficient tax administration system with capable tax bureaucrats. The paper singles out the general and China-specific features by which central government attempts to accompany economic transformation via tax farming to tax bureaucratisation in tax administration. Based on empirical study in two provinces this paper shows that without including local government agencies and their budgets, China’s fiscal federalism cannot be analysed and argues that China’s emerging tax system depends on the institutional and organizational design that shapes the interaction between central government, local governments and economic agents.
|Keywords||Fiscal Federalism, Tax Bureaucratisation, Tax Farming, Tax Governance|
|Publisher||Erasmus Research Institute of Management (ERIM)|
Zhu, Z., & Krug, B.. (2005). China’s Emerging Tax Regime: Local Tax Farming and Central Tax Bureaucracy (No. ERS-2005-088-ORG). ERIM report series research in management Erasmus Research Institute of Management. Erasmus Research Institute of Management (ERIM). Retrieved from http://hdl.handle.net/1765/7188