Current VAT revenue sharing system will not work for long, argues Bai Chong’en 白重恩 Tsinghua University Economics and Management College vice president and Gao Peiyong 高培勇 CASS National Academy of Economic Strategy director. Local governments have lost their biggest revenue source, business tax, they say, and compensation with 50 percent of VAT revenue is only a temporary solution. Clarification on local and central tax types will take time, adds Shi Wenpo 施文泼 Ministry of Finance Fiscal Science Research Institute analyst, as decisions on local tax types have been delayed due to lack of clarity on property tax implementation and consumption tax reform.