Influences of China's Resource Tax Reform on Local Economic Development

In order to protect the rational use of resources, reduce the environmental pollution and change the extensive pattern of economic growth, the resource tax in China should be shifted from the revenues to green type as soon as possible. So in October 2011, the resources tax reform was instituted throughout the country. The reform changed the quantity-based collection style to ad valorem tax levied and increased the rate of the resources tax. As the important local tax, reform of resources tax is exerting more profound impacts to local finance and microeconomic entity than that of other tax types. Because of that, this paper tries to study the influences of resource tax reform on local economy and discuss the direction of the reform in future.