The Research On The Relationship Between The Transformation Of VAT And Economic Development Of The Coastal Cities Of Jiangsu Province

The transformation of VAT has been carried out nationwide since 1 January 2009 and "the development strategy of Jiangsu coastal cities" became national strategy in June 2009. Under the background of this two strategies, the transformation of VAT causes multiply affects upon the economy and taxation of the northern coastal cities which is mainly embodied in promoting the development of emerging industry, negative impact on short-term tax revenue, positive influence on long-term tax revenue and effect on employment and the flow of talents.This paper researches that how to accelerate the industrialization of Jiangsu coastal regions from the viewpoint of state level in the process of regional infrastructure construction which represented by port development and how to promote the development of Jiangsu "lowland" on the base of industrialization and urbanization. The main ideas of this paper are as follows: make full use of the stimulating effect of the transformation of VAT on f the fixed asset investment, solve the adverse effects on tax revenue decrease caused by transformation of VAT, regulate the government's administration and service to cultivate the source of tax, seek better tax and fiscal policy support to promote industrial upgrade and emerging industry development and make Jiangsu coastal areas into China's economic growth pole.