Analysis On The Economic Effects Of VAT Transformation

The VAT transformation is an important tax reform in recent years, from september 2004, the VAT transformation spread in northeast old industrial base, China's consumption-based VAT come from the theoretical demonstration to the practical promotion, the tansformation have achieved some importent results, and have accumulated some practice experience for our country to promote consumption-type VAT. From 1 January 2009,our country implementated the consumption-based VAT. VAT as the main body of the turnover tax in China tax system.The VAT revenues accounted for the taxes about 40% of total income, VAT reform is a systematic project, it's leverage effect is very obvious. Jinan as the capital city of shandong province, the level of economic development is very high, the secondary industry accounted for a larger proportion of the economy in Jinan City, its effect value-added tax is more apparent. Thus, since the VAT tansformation, the overall economic, fiscal revenue, corporate tax burden and some areas of Jinan city have been impacted significantly.The international financial crisis disrupted the economy of China and at the time of our strategic adjustment of economic structure, it's a critical period and a particular context, the economic effects of the value-added tax transformation brought have let us do more thinking and research:.Since the comprehensive tax reform ,is's promotion in practice of the GDP, investment, industrial structure, financial income, corporate body will have what effect? The tax reform could bring about social welfare improvements, to achieve the purpose of optimizing revenue? It is based on these problems, this paper selected the economic data in Jinan City, resarch the economic effects of the VAT by the method of empirical analysis. Firstly,this paper use of relevant economic theory and the theory of taxation, including tax optimization theory, the principle of tax neutrality, the principle of tax efficiency, qualitative analysis of the VAT transformation on the economy as a whole, fiscal revenue, the burden of enterprise mechanism. Then take the Jinan City as an example, study the VAT basic situation before and after transformation. Finally, select Jinan city economic data before and after VAT transformation, through empirical analysis, assess and quantificate the actual impact of VAT on the overall macroeconomic, fiscal revenue, corporate tax burden in Jinan City, in order to correctly understand the VAT restructuring and the ability to rationally predict the results. In order to take advantage of this policy and other policy measures with the government for further reform of VAT and give Jinan suggestion for economic and social rapid development.