Fiscal Stress，Tax Transfer and Value Added Tax Sharing Mechanism
- HE Wei，LEI Genqiang
- Xiamen University，361005。
Under the principle of producer levy，there is a phenomenon that the VAT revenue is transferred from the province of consumption to the province of tax collection. This study adopts a spatial dynamic panel model to examine the relationship between fiscal pressure and value-added tax transfer from the perspectives of population burden, social expenditure burden，and fiscal self-sufficiency rate. Under the principle of VAT levying mode of production，VAT in our country is transferred from areas with great fiscal stress to areas with relatively less fiscal stress, forming the “Matthew Effect”. After simulating several VAT sharing schemes，we find that the scheme based on the population is not only more in line with the nature of the VAT collected in circulation，but also more conducive to the sharing of fiscal stress among regions and the equalization of public services.
- Fiscal Stress，Tax Transfer，Tax Sharing