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Tax for Fees An Inevitable Choice for Township Financial Management Under the Tax Division System

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  • Zhang Yikun

Abstract

Along with the implementation of the tax division system, financial responsibilities are divided at every level of government in order to ensure scientific management and a balanced budget. At the grassroots level, the way in which the township government fully exercises its financial functions and rationalizes the distributive relationship between government and peasants has become an important issue. A year ago, the Hunan provincial government carried out experimental "tax for fees" in Wugang City with good results. The experiments have shown that "tax for fees" regulates the fee collection mechanism and eases the burden on the peasants and that it is an inevitable choice for township financial management under the tax division system. The practice of "tax for fees" should therefore be popularized soon.

Suggested Citation

  • Zhang Yikun, 1996. "Tax for Fees An Inevitable Choice for Township Financial Management Under the Tax Division System," Chinese Economy, Taylor & Francis Journals, vol. 29(4), pages 95-100, July.
  • Handle: RePEc:mes:chinec:v:29:y:1996:i:4:p:95-100
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