Fiscal Transfers in China (Wang & Herd)

The system of revenue sharing and fiscal transfers in China by Xiao Wang and Richard Herd published by OECD (2/2013). “The main features of China’s current sub-national finance arrangements date back to the 1994 tax reform. China has a multi-level goverment structure that shares national tax revenues through a system of tax sharing and transfers, and divides spending assignments and responsibilities…Some local governments are testing a residential property tax but not in a form that would substantially raise tax revenue. A significant property tax would tend to lower the revenue from the sale of land-use rights and would, in general, improve the fiscal position of those local governments that already have strong budgets.”