| Environmental deterioration and exhaustion of resources are warning us about what we've sacrificed to obtain the prosperity.The accord development of economy, society and the natural environment has been slowed down by the disordered and extensive mode of economic development. Execution of the primary function area development strategy is strategic act to change mode of economic development and fulfil the scientific concept of development.Since the CPC Plenum in October 2005 and"national" Eleventh Five-Year "Plan"in March 2006 during which the development strategy in the primary function areas is established, some provinces began to pilot the main function zoning, but remain at the division level.The establishments of complementary fiscal policy are few, some provinces have not carried out the divisions of the primary function areas yet.Restricted by the fact that the primary function area development strategies have not yet been commonly practiced and are not abundant, theorists' analysis on how to use fiscal policy to assist the development and help implement the strategic intention of primary function areas is not taken out thoroughly and systematically.This paper begins with the role of fiscal policy functioning on those elements like investment, consumption and employment, learns to use the successful cases of how to take advantages of the fiscal measures to control economies, achieve environmental protection and promote the equalization of public services abroad.Target at China's four primary function areas development strategy, this paper involves establishing related location-targeted fiscal policy and designing ideas according to the objectives and tasks as well, to strive to deepen the theory study of fiscal policy.We also further detail the design and application of fiscal policy under the primary function area development strategy, predict the results brought by a variety of fiscal tools and build the implementation of mechanisms needed to carry outthe primary function area development strategy in order to enhance the operability and guidance function.The research method used in this paper achieved four combinations.Firstly, the combination of qualitative analysis and quantitative analysis.We talk about both the mechanism of economic regulation and control of various fiscal instruments to achieve environmental protection, promote the equalization of public services and performance analysis of how they work to achieve the strategic objectives for the primary function area;Secondly, the combination of normative analysis and empirical analysis. Not only the normative analysis of the dilemmas lying in various fiscal tools currently used in China and strategic objectives of the primary function area and improvement advice, but also empirical analysis of foreign fiscal policy similar in this field is mentioned in this paper;Thirdly, the combination of historical research and logical study.This paper combine historical research of the practice use of fiscal policy both foreign and in China, with the logic analysis of facing the background of primary function area development strategy, those related factors to be taken into account dealing with how to design fiscal policies, in the current history point;Fourthly, the combination of theory analysis and practice analysis.In this paper, we work on the interpretation in theory, summarizing the laws of how to use fiscal policies, and put forward the design of fiscal policies adapted to primary function area development strategy more operational as well.There is innovation on three aspects in this paper. Firstly, viewpoint is inaugurated. Execution of the primary function area development strategy is change of development idea in our country.It is fangle.It is inaugurated that systemic research in fiscal policy suit to the primary function area development strategy when all kinds of policies are on primary period. Secondly, content is inaugurated.The paper discuss matching with the primary function area development strategy at environment tax, taxation payment, transfer payment, public investment and government green procurement.The research is preceding problem and it's practice is lacking. Thirdly, means is inaugurated. The author analyse effect of all kinds of fiscal policy in Execution of the primary function area development strategy. In the course of composing environment tax, taxation payment, transfer payment, public investment and government green procurement, the author spread three steps of foreign correlative practice, current condition and performance evaluation,the design of fiscal policy suit to the primary function area.The paper has pertinence, maneuverability and extensity.According to a series of correlation studies and analysis, conclusions can be drawn as follows:Firstly, environment tax serves as a powerful tool in the promotion of the environmental protection in primary function area, as well as its resources conservation. In conformity with the primary function area development strategy, great stress has been laid on reinforcing energy-saving and environmental protection, as to enhance its ability of sustainable development. So it will reach relatively good results if we levy a tax on the environment, which can help solve the problem of negative externalities in production by strengthening the role of price-and-market mechanism.As for producer, levying tax on environment lifts the costs of polluting, which contributes to the equation of marginal private costs and marginal social costs.Thus the producer will be pushed to exhaust its ability to reduce the pollution, such as refuse reclamation, decontaminating before decomposition, reduction of outputs etc.This can bring us the boost of both the social outlays and the net proceeds of the entire society, which promotes sustainable development the other way round. Additionally, consumers will also be influenced by environment tax, and they will consume less of those goods that create more pollution, thereby protect the environment and save the resources.China is among the latecomers of environment tax, and so far, we haven't got any environment taxes in its true sense. Broadly, those taxes conducing to environmental protection regulation involves tax on vehicles and vessels use, resource tax, expenditure tax, urban maintenance and construction tax, fixed asset investment regulation tax, land-use tax of cities and towns, tax on occupation of cultivated land and so on. However, these taxes couldn't yield out expectation effects due to its lacking in consideration of environmental protection when drafted, and its environmental protection function is not prominent. Another problem remains unaddressed is that there's little difference between environmental protection aiming deduction and original taxes, and disposing pollutants tax is not established. Charges for disposing pollutants, a key resource used in environment economy now in China, are not that functional owing to unscientific system design, difficulties in tax collection in full, lacking rigidity during collecting, being capable of transferring, irregular using etc. Certainly, in addition to the charges for disposing pollutants, there exist some charge back systems available for environmental control in China, like mining royalty and mineral resources compensation fee.Yet here again they have some limitations both commonly and obviously. For instance, they all suffer a narrow range of levy, a lack in rigidity, low charging standards and not being able to reflect the diversity between districts.Fortunately, China at present has been provided with those advantages like a basically perfect system of public finance, a better social understanding of environment tax, some specialized organizations available. We can see that related social and economic conditions for environment tax have been realized.In order to meet the demands of primary function area, environment tax,in the narrow sense,requires special designs for the objects of assessment, intermediate links of taxation, taxpayer, basis of tax assessment and the rate.It also calls for the improvement of those supporting taxes such as resource tax, expenditure tax and other environmental taxes to aid its efficiency.Secondly, the promotion of government green procurement is the key aspect of environmental protection in primary function area.Government's implementing green procurement policy is obviously beneficial to environmental protection and resource conservation in those primary function areas.We should learn seriously from foreign experience of successful government green procurement for primary function area, to study and develop the government's green procurement policy in our reality. We should spare no effort to establish and promote our country's government green procurement system under the background of the primary function area development strategy.According to the actual situation of China's construction of the primary function area and combining with the advanced experience of the world's developed countries, China's government green procurement system should focus on the designing of the following areas:focusing on the concept of green purchasing to improve green awareness and establish green standards;developing the necessary laws and regulations of the government green procurement; improving related policies to support green government procurement;increasing green government procurement on agricultural projects; establishing a comprehensive and accurate information network systems;strengthening the organizational construction of green government procurement; defining our government's priority areas of green procurement;improving government oversight mechanisms of green procurement.Thirdly, Transfer payment is a important channel in public service equalization of the primary fuctioning zones.The development strategy of the primary fuctioning zones list the public service equalization as the key estimating content in the restriction and prohibition of the abusing of the development zone. Thereby, there is no substitution of the importance of the financial payment, in terms of realising the public service equalization of the primary functioning zones.In 1995, we have made the "The Transfer Payment Method for the Transition Period". It is the first time that we have the concept of "standard payment" and "standard income", and initially establish a financial transfer payment system which matches tax-sharing system. This document has been improved and standardized in practise. But it still remains so many problems in rebalancing the financial power in different districts when we are implementing our present transfer payment system. For example, the transfer payment in different formats needs more coordination, the tax rebates are not conductive the equalization, the scale of normal transfer payment is too narrow, the equalization of special transfer payment is lack of effect, and the transfer payment in municipalities is not well equipped. All these problems make the equalization of public service in dilemma.To coordinate the requirement of basic public service equalization of the primary functioning zones, the present financial transfer payment system has to be reformed. The transfer payment of primary functioning zones should be designed on the following aspects:confirming the orientation of the service equalization, improving the form of transfer payment, enhance the scientific feasibility of "factor method", dividing the government administrative and financial powers clearly, perfecting the financial system in municipality, establishing a horizontal transfer payment system and a supervision estimated mechanism and a administrative institution, enhancing the establishment of it's juridification, confining bounds for its basic public service equalization, etc.Fourthly, public investment of infrastructure is the solid foundation as to promote t he economic growth of primary fuctioning areas.Development strategy emphasizes that the main task in key development areas is to intensify our efforts in the basic infrastructure constructions, strengthen the ability to absorb more funds, technology, and population, and speed up the pace of industrialization and urbanization, improve the regional radiation capacity, as to become an important carrier of the population of regional with economic development.Key development is inseparable from the public investment in basic facilities. We need to seriously study the reality of the construction of the base facilities in the key development areas,learn from successful experiences targeted the designing of public investment policies of other countries.In view of infrastructure problems in the field of the public investment, and learn from the successful experience of foreign countries, our public investment of infrastructure in key development zones should focus on the designing in the following aspects:to promote investment diversification, to improve investment efficiency and to establish a reasonable scope and scale of investment.Fifthly, Taxation payment is an effective means in accelerating the optimization and upgrading of the industrial structure in primary functioning zones.The development strategy of primary functioning zones emphasize on the optimization of development zones. While in terms of industry, we should accelerate the development of modern service industries, develop high and new tech industries and advanced manufacturing industry, enhance increasing quality and elevate the layer of participating global distribution and competition. Taxation payment, as one of the most directive means of the government in supervising industrial structure, has a significant impact on the industrial investment. Therefore, it is doomed to be functional in optimization and upgrading of the industrial structure.The taxation policies, regulating objectively that our taxation burden differs from industry to industry, changing the revenue rate in different industries, playing a guiding role in capital investment accordingly, finally influent the overall industrial structure.However, our present taxation payment still remains some problems in industrial inspiration.Firstly, the taxation payment is not power enough in boosting the development of new and high tech industries. At present, other industrials, which are not in the scope of value-added tax implementation, such as service industrial and agriculture, cannot be counterected in vat on purchase, which has further increased the cost in technology innovation. The value-added tax has restricted the technology improvement.Enterprise income tax policies are not conductive to its technology improvement, embodied on too many limitations on enterprises'assets depreciation ways, no notable effect on the action of preferential taxation policy and the intensification in encouraging enterprises to develop scientific research being not well enough. The preferential policies of personal income tax are imperfect. Residential investment in high-level education is insufficient because of those reasons, for instance, the lack of considerations in the high educational investment cost of those high tech talents, and out of considerations of the residential educational payment in the deduction before tax. The levy of the income tax of the revenue from inventions and achievement transference of the high tech talents lowers the rate of the scientific achievement transference.Secondly, taxation payment is not very well stimulated in modern service. Turnover tax system is imperfect. The turnover tax in operation set. its tax items by industries, and enumerates the objects of taxation. When the economy emerges some new producing management ways, the turnover tax cannot take those objects in the scope of tax.The design of the tax rate is not up to fully embody the industrial differences, as well as the services industries which should be encouraged. The guidance is not well embodied on service industrial in terms of preferential method of the income tax. As to the modern service, it is short in unified regulations of tax preferential policy system.Moreover, the taxation payment hasn't inspired enough on advanced manufacture industry. Compared with the high technology industry, the tax preferential in manufacturing industry is few and far between. This prompts those manufacturing enterprises which involve some basic industries naming themselves with "high tech" labels and failed to apply their technological achievement into productivity.The joint venture enterprises and SOEs enjoy "over-national treatment" because the purchasing import equipments has more advantages than the domestic ones, which has caused domestic equipments losing its price advantages gradually. In our country, the tax of equipment manufacturing industries is comparable heavy, strengthening the burden of producing cost, influencing its international competitiveness. The present taxation policies have no stimulus method in senior technicians and administrators of technics and equipments which are in great need of advanced manufacturing industry. The shortage of senior technicians is incompatible with the development of advanced manufacturing industries.Finally, now, the effect of industrial structure optimization has been impaired by the ownership oriented and district oriented taxation payment. Moreover, the tax system especially those local ones are distemtered. This causes taxation vacancy and offside charge which lower the capacity of our central government adopting the tax policies to supervise macroeconomic control of industrial structure.For the moment, the optimizing development zone is the most intensive area in modern service, high-tech industry and advanced manufactory. While learning a lesson from the experience of foreign taxation payment optimizing the industrial structure, we are designing the taxation payment in our country base on the requirement of optimizing the upgrading of the development zones. We should design the taxation payment policies which will promote the development of the new high technology in following aspects:implementing long-term preferential tax rate, adopting the after-tax deduction and investment tax credits, implementing rational tax relief and rebates, practicing the accelerated depreciation selectively, putting the risk loss compensation system into practice, taking an active part in international taxation agreement formulation by multilateral and bilateral, scientific and technological cooperation. We should enlarge the scale of value added tax objects, and allow the producing enterprises, which purchase the service such as patented technology, to offset the tax; we should adjust the taxable items and tax rate of sales tax; we should set our goals and emphases of tax preferential in service industry, perfect the details of modern service tax preferential, regulate the devices and links of the policies, and establish a rational and efficient taxation payment policy system.From all the aspects, to design the taxation payment policies promoting modern service development, it is advisable to transparent the preferential policies as soon as possible which support the advanced manufacture developing, stimulate the tax more on the scientific and technological development of advanced manufacture,relieve the tax burden of equipment manufacturing industry, and offer special privilege on individual income tax of the senior technical staffs in manufacturing industry,etc. |
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