Abstract:

The paper provides characteristics of the tax reforms carried out in the People’s Republic of China from the second half of the twentieth century. The practice of tax reforms it terms of building socialism with Chinese specifics is linked to the Rostow’s Stages of growth model. The example of China illustrates how successful the tax targeting can be in the implementation of a consistent program of sustainable development of national economy. The objectives of the tax reforms in People’s Republic of China differed according to the stage of economic growth: the simplification of the tax system in traditional society, reducing the tax burden as a precondition for the take-off, increase of the tax burden on business at the stage of the take-off, the focus on social justice at the ‘drive to maturity’ stage.