Research On The Effects Of Value Added Tax And Consumption Tax's Adjustments On Chengdu's Tobacco Industry

At present, in order to reduce the adverse effects of the international financial crisis on China's economic development, our government has adopted a proactive fiscal policy and introduced a series of tax measures and policies. Under such situation, this paper explored the restructuring measures of value-added tax and adjustment policies of consumption tax in the tobacco industry.Starting with the present situation of China's tobacco industry, this paper introduced the general operation of the industry, industry-related policies and systems, the tobacco industry in Sichuan and the status of the tobacco industry in Chengdu in order to make readers have environmental and background understanding of the following issues this paper was to explore. Secondly, based on principles of tax law, through the mathematical model and an example, from a theoretical point of view, the paper studied value-added tax and consumption tax separately, then it illustrated the effects that both of them would bring on the tobacco industry. Next the paper discussed the overall impact that the two sorts of taxes would have on the tobacco industry. Thirdly, the paper made empirical studies based on tax data of the tobacco industry in Chengdu, and then it combined empirical studies and theoretical research to find out the similarities and differences between the two methods. And it presented a profound understanding of impact that both of the two sorts of taxes adjustment would have on the tobacco industry in Chengdu. Finally, according to previous research and analysis, the paper identified the potential problems that the tobacco industry in Chengdu would face in the near future. It came up with some reasonable recommendations for Chengdu tobacco industry to make it have a healthy and stable developmentThe contributions of this paper are mainly the following points. Firstly the theme is of novelty. There are quite a lot of researches of value-added tax in a particular sector and consumption tax, however, few of them does the research about the impact the adjustment of the two sorts of taxes would bring on by combining them. Secondly, the paper employed a wide range of research methods and was strict in logic. In this paper, mathematical models, examples of theoretical research and practical data analysis of empirical research were applied in order to ensure a comprehensive analysis of the place. As the theoretical analysis was based on the mathematical model, the conclusion was derived using rigorous mathematical specifications, and it had strong persuasive and logical rigor thirdly, it was timely. With the promotion of the value-added tax transformation across the country this year, as well as the adjustment of consumption tax made in May, so this study was quite timely; fourth, it was practical. From the perspective of the tobacco industry, based on the adjustment of the two kinds of taxes, the paper was through both theoretical and empirical study and put forward reasonable suggestions.