Research On The Fiscal And Taxation Policies Of Encouraging Our Country's Auto Industry

The manufacturing sector for a country has a decisive role in the economic development, as the automobile manufacturing industry which is an important part of manufacturing sector has a very important and no doubt role in the country's economic status. Our auto industry has been made a big progress in the development, now it has become an important pillar in the industries of the country. The development of our automobile industry is in good condition before the financial crisis in 2008, after the financial crisis our automobile industry has slow down the development progress. Based on the important role of automobile industry in the national economy and the effects of the financial crisis, our government promulgated a plan to adjust and promote the car industry. It aimed to cope with the financial crisis, grasp the development opportunity brought by the financial crisis and make our automotive industry have a reasonable and healthy development in the policy of the government intervention which began to adjust to automotive industry. Our automotive industry began to grow since the governmental policy was implemented, which verify the support for the positive effect that policies of the government make on the automotive industry. Then we can prospect for the positive impact that national policy can make on the automotive industry in the future. Fiscal-taxation policies can penetrate into all aspects of the industrial system as a part of government policy. It is necessary that using finance-taxation policies to guide the development, associating with the high cooperativeness and ability to accumulate capital and other characteristics. It can speed up upgrading the structure of automobile industry and strengthening our international competitiveness of the automobile industry, then promoting the comprehensive development of economy. This article is based on the government fiscal-taxation policies implemented to the auto industry. From the view of the beneficial and adverse effects the relevant policy brought, and give advice to reform adversely affect and recommendations to encourage the beneficial effects. Specific contents are as below:The first part briefly discussed the strategic status and the effect of fiscal-taxation policy of the auto industry through the international and domestic economic environment and the importance status our automobile industry have met. This paper also drew lessons from domestic and overseas scholars about the research results of the impact fiscal-taxation policies make on industry. Based on the study above, this chapter analyse the defects and deficiencies in this article.The second part mainly focused on the theoretical basis about the necessity of government intervention on the auto industry. First, it made a simple definition of auto industry. This paper defined the auto industry in a narrow view which includes automobile manufacturing industry, automotive wholesale and retail trade industry and car services industry. Secondly, it made theory analysis and necessity analysis about the intervention of automobile industry which governments executed the fiscal-taxation policies. It mainly illustrate the second part from three aspects:the theoretical basis, the importance of automobile industry and the advantage of finance-taxation policies intervention.The third part mainly focused on our current related fiscal-taxation policies and the effects of the polices to the automotive industry. It lay the groundwork to the fifth part through the analysis of the effect of current policies. In this section, it mainly summarize finance-taxation policies and the positive and the adverse effect through the different segments of automotive industry.The fourth part is laying on the groundwork to the fifth part through discussing the fiscal-taxation policies adopted by the overseas and the effect of the policies. In this section it mainly choose the United States, Japan and Germany these three countries to discuss their development evolution of related fiscal-taxation and then make suggestion to our policies' reform.The fifth part puts forward the policy proposals for reform from two points based on the analysis of the third and fourth part. One point is to encourage the implementation of incentive policies which have beneficial effects on automobile industry, another is the reform of policies which have an adverse effect on automobile industry. This section used the framework of the third part. The collection of the suggestions is linked to the car production processes.The above is a simple introduction to the research content and idea in this paper. This article aimed at discussing the flaw spot of fiscal-taxation policy according to the industry revitalization plan and then put forward of the ideas that can reform our fiscal-taxation policy's shortcoming. The study was based on the process of automobile industry to collect the effect of the policies and suggestions. This paper still has a lot of insufficient place which needs to be improved because of the limited ability the researchers having. The insufficiency mainly includes two parts as below. This paper has not given the details to every fiscal-taxation policies and used empirical analysis and other method sufficiently to quantitatively explore the polices developed our auto industry etc. It is also worth the further research in these aspects.