Research On Agriculture Tax System In Industrialization Process

The dissertation aims to illustrate the rules of the agriculture tax system in the industrialization process and provide an insight into the influences on agriculture tax system posed by agricultural economy’s change through China’s industrialization process and analyze the current problems in the system and its developing way. The thesis has six chapters as follow.Charperl is introduction of the dissertation as a whole. Having founded new China, in order to realize industrialization, our nation applied a strategy wherein developing industry was given precedence over agriculture, as a result of which, Dual Structure in Urban and Rural Areas has been formed, and the model of taking advantage of agricultural remains feeding agricultural development had impeded social and economic harmonious development of both rural and urban areas and weakened agriculture at the same time. In particular, a tax system based on Rural-urban Dualism had been one of the causes accounting for farmer’s heavy burden. On the16th National Congress of the CPC a strategic decision named Holistic Plan of Rural and Urban Economic Development was proposed with the main idea of down-the-earth implementation of Holistic Plan of Rural and Urban Economic Development, and that agricultural tax systematic revolution was an important breakthrough point for holistic planning for rural and urban economic development had been stated. On December2005, the Central Committee of National Congress passed a decision of abolishing Agriculture Tax Regulation of People’s Republic of China, which means agriculture tax has been left in history. At the Third Plenary Session of the16th National Congress of the CPC the central government clearly stated out "to create conditions to realize integration of rural and urban tax system gradually", i.e. to change the configuration of dual system of rural and urban tax, to even rural and urban residents’tax burden, and to construct an integrated rural and urban tax system is a promising developing direction of the future tax system. Therefore, after the cancellation of agriculture tax, those questions as how the government, according to the object needs of social market economy, should reconstruct agriculture tax system under the big background of holistic plan for rural and urban development, how to design a short-term and a long-run goals for agricultural tax reform, are worth deep research. At this point, this essay bases its cream of research on the agricultural tax system during the industrialization process in China. Chapter2is a summary of agriculture economy in agricultural society and its agriculture taxation system. Tax object of agriculture tax in agricultural society is population and land. In general, the previous is mainly based on population, although there are multiple names of it, it can be sorted to capitation tax in nature. Feudal land rents has three types, service land rent, object land rent and goods land rent. Tax on agricultural land has different types according to its variety of tax basis. For example, aside from tax on land-acreage, tax on benefits from lands is another type called land tribute. In some countries land is taxed as it is considered as the owner’s property. In ancient China, there were5comparatively stable and practical agricultural tax systems which played an important part in Chinese thousand-long history of agricultural society, named Labour Service Tax in Xia, Shang, Zhou dynasties, Land Popularity Labour Tax in Qin, Han dynasties, Zu Yong Tiao Tax in dynasties from Wei Jin to middle Tang dynasty, Double Tax since middle Tang to pos-middle Ming dynasty, One Whip tax from post-Ming to Qing dynasty, were performed in historical succession.Chapter3is a comment on historical basis of China’s modern taxation system. Achievement of industrialization was a gradual course, for developed countries, of being perfected and matured with several stages where they had set up various economic developing goals and assorted with policy and measures. Similarly, it would differ in agricultural policies. During pre-industrialization, agricultural tax policy focused on getting support from agricultural surplus to be developed by taxing highly on agriculture. In the mid-industrialization, the support on agriculture turned out to be policy, and measures of taxing lower are taken step by step. In the later period of industrialization the governments adopted protective tax policy for agriculture.Chapter4is an illustration on China’s industrialization process, agriculture economy and agriculture taxation system. Since being founded, China applied industry-dominating-development strategy that helped city-and-countryside dual economic and social structure gradually take shape, and dual tax structure based on division of city taxation and countryside taxation were built at the same time, i.e. modern industry and business tax system composed mainly by VAT, IT, PT to industry, business and urban residents, while agricultural tax system composed by agriculture, tax and agricultural specialty tax to agriculture and rural residents. Chinese modern agriculture tax system was outcome under special political and economic background and it once made huge contribution to Chinese economic development. With the development of economy and progress of society, to leave farmers who are conducting and rewarding from agricultural activities out of industrial business tax system and leave them with exclusive agricultural tax has shown many defects and disadvantages. In historical point of view, Agriculture Tax Regulation has imposed an important active impact on implementing rural policies, accurately handling relations of distribution between our nation and farmers, boosting agricultural production, guaranteeing necessary resources of provision and administration of foundation course. Nevertheless, since Agriculture Tax Regulation has enforced for approximately50years and status of China’s economic society has been of great change, to cancel agriculture tax is inevitable and necessary. To abolish Agriculture Tax Regulation will be of major historical and substantial significance.Chapter5is an analysis China’s current agriculture taxation system. Lacking fit movements along with ablishing agriculture tax leads to a "vacancy phenominan" in current agriculture tax administration. The occuring problems should not be ignored:the absence of the tax fiscal function; the reduction of the tax economic function; the breach of the principles of tax fairness and tax efficiency.Chapter6focuses on the direction of China’s current agriculture taxation system. Distribution relationship of state and presents can be generalized as fees, pricing, tax and land rent. From the angle of effectively getting fiscal revenue by participating in micro-economy adjustment so as to promote harmonious development of national economy, the dream way of country taking part into national revenue from agricultural department is taxes. No matter what kind of agriculture tax system it is, property type, turnover type, income type, balance and unification will be unachievable in finance, fairness and efficiency. There is a need for market economy to treat every economic the same way therefore agriculture deserves equivalent tax preference as industry and business do. Reform of agriculture tax should adhere to the following rules:to combine burden-relief and tax levy together; to adopt an equal attitude towards tax systemization and agriculture particularity; to keep balance between evening up tax bearing and special treatment. By now, the abolishment of agriculture taxation is only a starting point of agriculture tax reform and the ultimate goal of this reform is to build up a new tax system suit for both city and country. Restructure of agriculture taxation is a complicated system which cannot be attained in one step but can only proceed in an orderly way step by step, accompanied by supporting measures all together. The short-term goals are as follows:to micro-control present agriculture tax system and improve supporting tax preference policy; to clear up all sorts of obstacles preventing free transfer among agricultural production factors to help them move more freely and efficiently; to put more support on agriculturally productive cooperation aiming to better farmer organization; to enhance public service ability to perfect agriculturally socialized service organization. With the pace of Chinese economy integrating into global economy has been accelerating, Chinese agriculture would finally accomplish production and operation industrialization and commercialization. In order to get accustomed to changes of economic form, China will gradually establish a tax system for both city and country and for all industries as well. When it comes to the content, China should choose a form which is internationally well-chosen setting VAT as a base along with other tax categories, and extending taxation incidence, within the existing tax system, by adding some taxable items that are matched into VAT, property tax and consumption tax and abolishing land-use tax of cities and towns and tax the same land-use tax for both city and country. At the same time, to extend the urban maintenance and construction tax to country and set a new tax of education and maintenance and construction for both city and country. Besides, considering the situations of peasant getting low income and agriculture base being fundamental, fragile and high risky, China should be abide to a rule of giving more, taking less, loosening control, should give special consideration and preferential treatment to agriculture as a significant supporting measure from government. It is not a solo matter of some minor adjustment if China wants to perfect agriculture tax system and achieve the goal of unifying tax systems of city and county. The process and result of this reform are intimately related to country organization reform, county financial administrative system construction, rural educational system reform and education layout adjustment, and how to perfect rural public service offering system, that are needed to be push ahead simultaneously so as to provide a appropriate outer environment for the reform.