Research On The Value Added Tax Transformation To Economic Influence In Jilin Province

In 1994 when the tax system was reformed, for the consideration of our domestic economic conditions and the requirement of controlling the scale of investment at that time and meanwhile for the consideration of fiscal revenues and tax burdens of enterprises and other factors, our country carried out the productive value added tax (VAT.)Since then 10 years has passed. During this period, the economic conditions in our country have witnessed great changes, which are mainly reflected as: with the gradual establishment of the market economic system, upgrading and replacement of the industrial structures and changes in the pattern of economic increases, the contradiction between the productive VAT and the operation of economy is becoming more and more serious. What is most conspicuous is that the taxes of purchases are not allowed to be deducted from the fixed assets, which directly prohibits the technical innovation in enterprises and increases the tax burdens of the domestic and foreign enterprises. After China joined WTO, with the decrease in the tariff level and with the cancellation of non-tariff rampart, this contradiction will become even more protruding. Thus it has been a consensus to reform the current VAT and this problem has aroused much attention from the government. At the end of October 2003, our central government put forward "Several Proposals on Implementing the Strategies for Rejuvenating the Old Industrial Foundations in the Northeast China" and also put forward "carrying out the reform of transforming the productive VAT into the consuming VAT preferentially in the Northeast". After that, the Third Plenary Session of Sixteenth Central Committee was held and agreed on "The Decision to Accelerate the Reform in the Socialistic Market Economic System". The "Decision" pointed out definite and specific goals for putting forward comprehensive reform in the tax system, which was going to be carried out in China in the following period among those goals, the transformation of VAT has been considered as the one of the important issues in the future reform in the tax...