Ma Haitao and Meng Xiaoyu wrote in the 8th issue of Taxation Researchin 2022 that accelerating the construction of a unified domestic market was the intrinsic requirement for improving the socialist market economy. Currently there are a lot of problems in China’s taxation: the production tax-based structure is affecting market allocation of resources; regional tax incentives are not helpful to the establishment of a fair competition environment; the deviation of tax revenue from tax sources increases institutional trading costs. These problems are hindering the development of a unified domestic market by distorting the competition of market participants and building local administrative barriers.China can draw on the experience of the United States and the European Union to promote the construction of the unified domestic market: to optimize the tax structure, advance the value-added tax reform; to standardize tax incentives, establish tax environment assessment indicators to guide local governments; to improve the construction of the cross-regional tax sharing mechanism;to strengthen horizontal tax coordination and the cooperation in levies and supervision.