共享税 (gòngxiǎng shuì): Shared tax

Premier Li Keqiang said in this year's Government Work Report that China's fiscal and tax reform has made major progress. The country has developed a system based mainly on the sharing of tax revenues among the central and local governments.

The sharing system divides the tax revenues among the central and local governments according to a certain proportion decided by the central government. At present there are many shared taxes including individual income tax, added value tax and corporate income tax.

Tax revenues are an important part of local government finance, which is of great significance to the development of local areas.

During the two sessions this year, some members of the National Committee of the Chinese People's Political Consultative Conference, China's top political advisory body, have filed proposals about adjusting the division of shared tax revenues among the central and local governments.

As the tax sharing system is basically developed, we should scientifically decide the proportion of tax revenues that goes to the local governments.