Structural Tax Reduction for Realization of Multi-Targets in China[Strukturální snižování daní pro uskutečňování vícenásobných cílů v Číně]

Under the background of global economy's continuous fluctuating, China's economy is expected to experience slowdown of economic growth or long-term fluctuation. The macro-economic policies with constraint of current situation must focus on stabilizing economic growth, adjusting economic structure and curbing inflation. And the major clue to meet these targets is to implement structural tax reduction. This paper analyzes the justification and potential for Chinese government to introduce structural tax reduction policies. A proposal of identifying the appropriate amount of tax reduction and concentrating on VAT reduction which contributes to the main parts of Chinese tax revenues is suggested. We also argue that VAT reduction should be followed by both broadening tax base and cutting tax rate.