By Guo Jiaofeng, Gao Shiji, Hong Tao, Wu Xu & Bai Yanfeng, Research Team on “Consumption Tax Reform of Refined Oil”, Research Institute of Resources and Environment Policies, DRC

Research report No.46, 2016 (Total 4929) 2016-4-7

Abstract: A set of relatively complete policy system has been formed in current refined oil consumption-tax system, and it has become one of the most important measures for guiding effective consumption and reducing environmental pollution. But problems like unscientific collection process, unreasonable income distribution and defective tax collection still exist. These problems give way to tax evasion and avoidance behaviors using invoice exchange, type-change and reselling, leading to serious tax erosion and unfair competition. Consequently, current system could no longer satisfy the demand of green energy development. In order to bring the regulating effect of green taxation into full play, measures for further improvement are needed. It is suggested that we should study how to shift the focus of consumption-tax collection of refined oil onto terminal consumption and how to improve taxation collection system and supporting measures. While prudently carrying forward the reform, we should make pilot practice relating to gasoline consumption tax reform first, change central tax to central and local shared tax, effectively curtail tax erosion through “Internet Plus Taxation”, complete standard system and quality control and enhance social credit system construction.

Key words: refined oil consumption tax, current situation, problems, reform, green taxation