Consumption tax is an important auxiliary tax with multiple functions. As time goes, it can be given some new orientations: such as replacing some functions of personal income tax to improve the progressiveness of the taxation system; replacing some of the functions of business tax to implement industry regulation more effectively; making up for the defect of VAT and improving the efficiency of resource allocation; making up for the lack of local taxes and build a new pattern of income distribution among central and local governments. Reasonable expansion of the tax scope and the appropriate adjustment of tax rate will help consumption tax to better meet the requirements of the new era.
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