The Plan for Deepening the Reform of the Party and State Institutions clearly states that the main content of the reform of the collection and management system of national tax and local tax is to merge the national tax and local tax institutions below the provincial level, implement a dual-leadership management system with State Taxation Administration of The People's Republic of China as the main body and the provincial (autonomous regions and municipalities directly under the Central Government) governments, and hand over various social insurance premiums such as basic old-age insurance premiums, basic medical insurance premiums and unemployment insurance premiums to the tax authorities for unified collection.

The Plan points out the purpose of the reform: to reduce the collection cost, straighten out the responsibility relationship, improve the efficiency of collection and management, and provide taxpayers with better, more efficient and more convenient services. The "Proposal" requires that the structural layout and strength allocation should be improved in accordance with the principle of combining "slimming" with "fitness" to build an optimized, efficient and unified tax collection and management system.

Hu, dean of the Institute of Public Policy and Governance of Shanghai University of Finance and Economics, believes that the reform of national tax and local tax institutions from separation to merger is conducive to improving operational efficiency, including reducing the cost of collection and management, improving the efficiency of collection and management, and promoting fair competition. After the merger of national tax and local tax agencies, tax-related information is exchanged, unified collection and management, consistent treatment, preferential transparency, promoting the normal and reasonable flow of enterprises between regions, and more effective and reasonable resource allocation. Source: CCTV