The article starts from tax revenue loss to individual business households. From the fact that individual business households account for the largest number in the country yet the budget revenue from this group is lowest, the article points out irrationalities in legal regulations and management mechanism which result in the issue. Specifically, tax policies have not been developed on a scientific basis, tax calculation methods are changed regularly and divided into many groups of industry with a large difference in tax rates. In addition, the inconsistency in the regulations on invoices has caused varying applications and paved the way for illegitimate activities in tax calculation. Therefore, the article proposes to change policies and improve the legal system so as to uniform tax calculation methods for mitigating illegitimate activities, reducing the revenue loss from tax and ensuring a fair playground to different types of businesses. Besides, the article suggests applying IT in the tax management for better transparency, just tax treatment, better compliance by the business households and reduction of compliance costs. This also can make it easier for government agencies to manage and reduce negative issues, especially in the context of Industry 4.0 and the world’s development trend.