ABSTRACT
Central Economic Work Conference (CEWC) has always been confronted with two issues. One is to evaluate China's current economic situation, and the other is to design economic policies for the next year. The CEWC, held at the end of 2011 completed those routine matters. It made an inclusive evaluation of the world's economic situation, and then outlined plans for continuing to implement proactive fiscal policy and prudent monetary policy. This chapter looks into the actual arrangements over the names of macro policies, recognize and understand the world's current economic situation and the CEWC spirit, and then draw out the road map for 2012 proactive fiscal policy. Under China's existing tax structure, VAT, consumption tax, business tax and customs duty are categorized into indirect or turnover taxes. Regarding the direction of the taxation reform, particularly the reform aiming for tax structure optimization for the Twelfth Five-Year Plan period.
