Finance is the foundation and important pillar of national governance, and the fiscal and tax system plays a fundamental, institutional, and guaranteeing role the governance of the country and the management of the household. Since the 18th National Congress of the Communist Party of China, the Party Central Committee, with Comrade Xiping at its core, has placed great importance on and coordinated the reform of the financial and tax system, and has made historic achievements in the reform of the budget, taxation, and system. General Secretary Xi Jinping pointed out that "a sound financial and tax system is a institutional guarantee for optimizing the allocation of resources, maintaining a unified market, promoting social equity and ensuring the long-term stability of the country," and emphasized that "we should deepen the reform of the financial and tax system, improve the fiscal transfer payment system, the fiscal system below the provincial level, steadily promote the construction of the local tax system, and consolidate the basic financial resources and the ability for self-development of local governments" The Fourth Plenary Session of the 20th Central Committee of the Communist Party of China deliberated and adopted the "Suggestions of the Central Committee of the Communist Party China on the Formulation of the 15th Five-Year Plan for National Economic and Social Development" (hereinafter referred to as the "Suggestions"), put forward requirements for the key work of finance and taxation during the 15th Five-Year Plan period. This provides a scientific guide for further deepening the reform of the and tax system and promoting the high-quality development of financial work.

The objective requirements for promoting Chinese-style modernization
Deepening the reform of the fiscal and tax system is of great significance comprehensively advancing Chinese-style modernization with high-quality development. It is an important part of the overall plan for further deepening reform and reflects the far-reaching consideration strategic planning of the Party Central Committee on financial work.
Deepening the reform of the fiscal and tax system is an essential part of advancing the modernization of the national governance and governance capacity. "Making new breakthroughs in further deepening reform in an all-round way" is one of the main goals proposed by the Fourth Plenary Session of 20th CPC Central Committee for the economic and social development in the 15th Five-Year Plan period, and "Deepening the modernization of the national system and governance capacity" is an important content. Advancing the modernization of the national governance system and governance capacity, the establishment of a modern fiscal system is an important guarantee, poses higher requirements for the reform of the fiscal and tax system. On the one hand, a modern fiscal system is the basic guarantee for the scientificization and standardization of daily governance, providing necessary, reasonable and stable financial support for the financial activities of governments at all levels. On the other hand, a modern fiscal system is an important part of the macroeconomic system, and the fiscal policy tools composed of budgets, taxes, etc., are an important force for optimizing resource allocation, improving economic efficiency, promoting social equity and achieving macro stability. The reform of the fiscal and tax system should properly handle the relationship between the government and the market, the fiscal relationship between governments, and center on promoting the transformation of government and regulating the management of fiscal revenue and expenditure. Since the reform and opening up, the reform of the fiscal and tax system has become the breakthrough and vanguard of economic system reform In the great journey of promoting Chinese-style modernization, deepening the reform of the fiscal and tax system is of great significance and is an important focus of further deepening reform an all-round way.
Deepening the reform of the fiscal and tax system is an inevitable requirement for the sustained and healthy development of the market economy. Since the reform and opening up, China has gradually established and improved the socialist market economic system, and has made great economic achievements. In 2024,'s GDP reached 134.91 trillion yuan, with the added value of the second and third industries accounting for 36.5% and 5.7% of GDP respectively; the per capita disposable income of urban and rural residents was 41,314 yuan, and the per capita consumption expenditure was 8,227 yuan; the role of innovation-driven development was significantly enhanced, and the added value of the equipment manufacturing industry above designated size and the high-tech industry accounted for 34.6% and 16.3% of the added value of the industrial industry above designated size, respectively. The "15th FiveYear Plan" period is a critical period for basically realizing socialist modernization, and it poses an urgent requirement for building a high-level socialist market economic system. Deepening the reform the fiscal and tax system is a key measure. With the change of the principal contradiction in our society, the people's attention to economic efficiency, green development, social equity, regional balance is constantly improving, and government revenue and expenditure activities need to respond to this. At the same time, with the acceleration of the new round of technological revolution and industrial, new business forms such as the digital economy and artificial intelligence are booming, and the impact on the way of fiscal revenue and expenditure is increasingly apparent. To deepen the reform of fiscal and tax system in line with the new characteristics and trends of economic development has become an inherent requirement for building a high-level socialist market economic system.
Deepening the of the fiscal and tax system is an important force for the transformation and upgrading of the economy and society. China's economy has shifted from the stage of high-speed growth to stage of high-quality development, and is in the period of changing the mode of development, optimizing the economic structure, and transforming the driving force of growth. Deepening the reform the fiscal and tax system is the key focus for promoting the transformation and upgrading of the economy and society. On the one hand, some traditional industries contain abundant financial resources, and transformation and upgrading of the economy and society inevitably impact the existing financial resources, which is more common in local finance. Relying solely on central transfer payments is difficult to fundamentally solve problem of tight balance in local finance, and it is necessary to deepen the reform of the budget, tax system, and finance, strengthen the overall planning of financial resources, ensure available financial resources of local governments, and provide support for economic and social development. On the other hand, the transformation and upgrading of the economy and society need to coordinate the cultivation of momentum and the renewal of old momentum, and stimulate the transformation and upgrading of operating entities through fiscal and tax system reform, and cultivate new momentum for economic development. China has a territory, different resource endowments in different places, and there are certain gaps between regions, and the ability to cultivate new momentum and undertake new industries also varies. Deepening the of the fiscal and tax system, through increasing financial support and policy optimization, can effectively promote the smooth transition and conversion of new and old momentum