Extended data:
1994 The reason for the tax reform is actually very simple. In the past, the tax system was all-inclusive, the central government was poor, and the local fiscal revenue provinces were really rich. The central government was nervous and had to borrow money from local governments. Through the tax-sharing policy, the central government can ensure greater financial resources, and some wealthy provinces can also ensure local economic interests through tax refund. This effectively prevents local governments from withholding central taxes and ensures the country's macro-control ability.
During the period of 1994, the state implemented the tax system reform, and according to the differences of industries and taxes, the former tax bureaus were divided into the national tax bureau and the local tax bureau.
The combination of national and local taxes is a major fiscal and taxation reform. Today is just the beginning, and many supporting fiscal and taxation rules will be introduced one after another. These new laws, regulations and departmental rules will definitely change some existing tax compliance rules, which requires taxpayers and taxpayers to follow up the changes of tax system and tax law in time and respond in time.
References:
Tax system reform-Baidu Encyclopedia