Study On The Taxation Institution Issue Of The Steel Industry In China

The steel industry in China is not optimistic in the current development trend because of rapid expansion of production capacity, medium and low surplus production, high value-added products in shortage of supply, and relatively high resource consumption. Those problems resulted in the status quo of a large gap between competitiveness of the steel industry in China and developed countries. After the outbreak of the financial crisis, the sharp drop in external demand made a very big impact to the steel industry in China, with demand decreasing and export volume declining. The tax revenue is an important means of macroeconomic control, which is significant to the development of the steel industry. Therefore, this paper studies tax issues of the steel industry development of, which have practical significance and reference value to the promotion on the development of the steel industry in China and on the country's future orientation of macro-control policies.In Chapter Two, the paper sets out from the current situation of the development of the steel industry, firstly proposing the problems on development of the steel industry in China, and secondly studying the reliable basis why taxation supports the steel industry. The paper believes that the tax will help the industrial upgrading and the improvement efficiency of steel industry, because the abolition of export tariffs on some products can reduce the cost of steel export; and the improvement of export tax on certain steel products can make limit to high pollution and high energy product exports, which is conducive to industrial upgrading; and the enactment of value-added tax policies of renewable resources, is conducive to achieving a healthy and orderly development for the scrap steel recycling industry; and tax planning has an important meaning for the development of iron and steel enterprises, which is an integrally important part of enterprise development. On this basis, the paper proposes the current tax policy on the impact of the steel industry and problems. Combining the characteristics of the steel industry, Chapter Three analyzes the environment between steel industry in China and tax, involving categories of taxes, tax incentives and tax levels, and focusing on the characteristics of the tax level of the steel industry. The conclusion is that the total tax level is largely impacted by the overall economic operation, that the turnover tax share is higher and the income tax share of the lighter, and that the steel rates vary greatly within the enterprises.Chapters Four and Five in this article analyzes emphatically the status quo, the problems and the reform of value-added tax and income tax in the steel industry of China.This sixth chapter takes an iron and steel company for example, and combining the actual situation in the steel industry and the general law, and using empirical analysis between the tax structure and output of iron and steel industry, it comes up with the impact of tax on the steel industry, in which the irrational factors is analyzed. Last but not least, the paper puts forwards the solutions to the future development of the steel industry according to the lack of empirical analysis, aiming at creating a favorable tax environment for the steel industry in China.It is concluded that, If the tax can be divided into turnover tax (VAT and sales tax), income tax and other taxes, the optimal path selection of steel industry are as follows:First, the proportion of turnover tax should be reduced to expand margins; Secondly, the income tax planning should be implemented to enhance the output elasticity of labor factors; Finally, three types of taxes should be rationally planned to increase the proportion of other taxes.