Tax Reform in China: Past Performance and Future Challenges (Report‪)‬

1. INTRODUCTION The foundation of China's current tax structure was laid by the 1994 tax reform, which holds the most important position in China's modern history on account of its scale and implications. Given the background of the overall direction of government policy at the time, the reform established a basic framework of China's tax system for meeting the requirements of a market economy. During its operation in the past 13 years, China's current tax system has played a significant role and has achieved its primary goals of increasing government revenue, enhancing government's ability for macroeconomic control and regulation, equalizing regional economic and social development and accommodating the development structure of economic globalization.