Seminar & Lecture Series
International Seminar on Fiscal and Tax Policy Reform
21 May 2013 Shanghai, The People's Republic of ChinaAn international seminar on the PRC fiscal and tax policy reform was held on 21 May at the Asia-Pacific Finance and Development Institute (AFDI) in Shanghai. The purpose of the seminar was to explore successful experiences of the PRC’s fiscal and tax reforms since 1994, discuss the challenges posed by economic restructuring, and share experiences of various countries’ fiscal and tax policies, particularly during economic transition periods. The seminar was co-sponsored by ADB’s Regional Knowledge Sharing Initiative (RKSI).
Organizer:
Asia-Pacific Finance Development Institute
Agenda:
| Time | Program |
|---|---|
| 8:30-9:00 | Registration |
| 9:00-9:30 | Opening Remarks Chair: Li Kouqing, Director-General, AFDI Xie Xuan, Deputy Director General, International Department, MOF Robert Wihtol, Director General, East Asia Department (EARD), ADB |
| 9:30-10:45 | Session I: Overview of Fiscal and Tax Reforms since 1994, Challenges and Policy Options for Inclusive Growth Since 1994, the PRC’s fiscal and taxation policies have experienced a tremendous change with the introduction of a shared tax system, and in particular the VAT. As a result, tax revenue has increased steadily from about CNY300 billion to CNY12 trillion in 2012. During this period, the budgeting system was also reformed allowing the central government more leverage to redistribute resources to less developed regions. However, as economic development moved forward, different issues emerged including the match of social responsibility of the government and revenue generated from a shared tax system. Against this background, the fiscal transfer system has to be reconsidered. The session will look into the following key issues: what are the challenges in fiscal and taxation policy that the PRC faces in the current context? What are the main issues that need to be resolved? Moderator: Peng Runzhong, Director, AFDI Panelist: Zhuang Juzhong Deputy Chief Economist, Economics and Research Department (ERD), ADB Meng Chun, DDG, Development Research Center, State Council CN Yin Xingmin, DDG, China Economy Research Center, Fudan University CN Discussion |
| 10:45-11:00 | Coffee Break |
| 11:00-12:30 | Session II: International Experience in Fiscal and Tax Policy Fiscal and taxation policies are the centerpiece of sound macroeconomic policy. Experiences in various countries provide interesting insights for today’s discussion. Every country has developed a unique form, in particular when it comes to the relations between central and local governments. The session will look at selected international experiences to draw on relevant lessons learned. Moderator: Yolanda Fernandez Lommen, Principal Economist, EARD, ADB Panelist: Jorge Martinez Vazquez, Professor, International Center for Public Policy, Georgia State University Satoru Araki, Tax Expert, RSDD, ADB Zhou Qiangwu, DDG, AFDC, MOF Discussion |
| 12:30-13:45 | Lunch |
| 13:45-15:00 | Session III: Reform of the Intergovernmental Finance System Economic restructuring in the PRC, coupled with achieving the objective of establishing a prosperous society by the end of the century requires reforms of revenue and expenditure system between central and local government. Against this context, it is particularly important to align the responsibility in the provision of basic services with adequate financial resources. In addition, fiscal and taxation policies should reflect the trends of the market-oriented reforms, and the nature of the government functions. The session will discuss and revisit the roles and responsibilities of central and local governments, with the purpose of adequately aligning revenue and expenditure responsibilities. Moderator: Liu Hanyong, Director, Shanghai Finance Department Panelist: Bai Jingming, DDG, Fiscal Policy Research Institute, MOF CN Qian Ying, Director, EARD, ADB Liu Junmin, Director, Fiscal Policy Research Institute, MOF Ma Haitao, Dean, Fiscal and taxation Policy Institute, Central Financial University CN Discussion |
| 15:00-15:15 | Coffee Break |
| 15:15-17:00 | Session IV: Roadmap for Fiscal and Tax Policy Reform There are different options on how to move forward fiscal and taxation reforms in the PRC. In this process it is important to explore how to best adapt to the current international and domestic juncture in order to design a suitable reform roadmap that may be considered by the policy-makers in the context of the current economic reform agenda. The session will invite the views from representatives from government and the academia to identify the best options to modernize the fiscal and taxation systems in the PRC in accordance with the country development targets. Moderator: Zhou Qiangwu,DDG,AFDC, MOF Panelist: Wang Chaocai, DDG, Fiscal Policy Research Institute, MOF CN Wang Yongjun, Dean, Public Administration Institute. China Central Financial University CN Chen Huan, DG, China CDM, MOF CN Yan Yan, Director, Shanghai National Accounting Institute CN |
