According to indirect tax redistribution principle, and using the generalized entropy (MLD) index and data from the year 2002 to 2012 in China, we respectively build a model and measure the role or effect of three major indirect tax (including VAT, consumption tax, business tax) adjusting income distributions in urban and rural China. It is found that the current indirect tax system has an unfair adjustment role, namely reverse distribution effect. Compared with the pre tax income gap, after tax income gap of urban and rural residents increases; the expansion of income gap within urban and rural areas (mainly resulting from the widening of rural income gap) is much higher than between areas. When considering three major tax influence on income distribution, we conclude that the effect of VAT widening income gap is much obvious, followed by consumption tax, and finally the effect of business tax is the weakest of the three. The reverse adjustment role of indirect tax system mainly results from that the design of tax rates is not scientific. In detail, tax rate span between basic goods (services) and non basic goods (services) doesnt appropriately expand.