Basic Report

Local tax exclusion and exemption go into two directions. The one makes an effort tolessen to enlarge local tax revenue, The orther advocate it especially to revitalization ofregional development. Recently, The new central government drives to reduce local taxexclusion and exemption. Because of increasing local tax revenue.The purpose of this study is to improve and redesign of local tax exclusion and exemptionsystems.In 2011 year, Diverse systems in connection with Local tax exclusion and exemptioninduced in local tax system. Almost this systems designed for self-regulation of localauthorities and efficiency of local tax policy. But the systems did not operate to aim ofdesigning. The problems lead to the result in increasing local tax exclusion and exemptionby central government, on the contrary, decreasing by local government. actually in 2011year, Local tax exclusion and exemption by central government amount to 95 percent, inresult, self-regulation of local authorities decrease more and more.So this study presents some ideas for improvement of local tax exclusion and exemptionsystem going through analysis situation of institutional and operational systemsThese findings have a number of implication of tax policy as followsThe first, The existing local tax exclusion and exemption is a cause of financial disparty,so it is necessary to modify in a direction of promoting equality of local governmentThe second, Because local tax policy is accomplished uniformally by central governmentand local tax law. There is no room for reflection of peculiar though of local government.For that reasion, it is nesessary to carry into effect pointing to regional peculiarity andself-regulation of local authorities.The main ideas and alternatives for provement of local tax exclusion and exemption systemwere as follows1. being equipped efficient regulation systems and decreasing local tax exclusion andexemption by central government2. strengthening a role of local council and increasing local tax exclusion and exemptionby local government3. concreting authority cite of sunset law system and enlarging self- control of localgovernment4. modifying indirect favores to direct ones and decreasing local tax exclusion andexemption