Development Of Circular Agriculture And Taxation Policy

The circular economy is one kind of economical growth pattern, compatible with sustainable development idea, which takes the circular use of resources as the core, "reduce, reuse, recycle" as the principle, low consumption, low discharge and high efficiency as the basic characteristics. The development of circular economy which can lessen resources pressure and reduce pollution, conforms to requirements of the science development view. The use of circular economy idea in the countryside is one of urgent requirements for construction of new social countryside.There are many problems in the process of our country agricultural development, for example, the problem of agricultural resources and ecological environment, reduction of per person farm land, reduction of agricultural water supply, loss of water and farm land; overuse of fertilizer and pesticide, serious pollution on agricultural environment; the need for improving the extent of agricultural industry and quality of agricultural products. The resolution of these issues are depended on the reform on agricultural development way, referring to circular agriculture development, which merged agricultural economy activities with natural ecology circulation, promoting the transfer of agricultural ecology and economical system. As an industry with low status, agriculture has many characteristics, such as long-term production cycle, high investment risk and low stability of revenue participation, etc. Besides, circular agriculture has externality which just could be resolved by financial expenditure. Therefore, government should take various kinds of polices, especially fiscal and taxation polices, to promote the development of circular agriculture.This article takes research on circular agriculture through the method of combining theoretical analysis with empirical analysis and qualitative analysis with quantitative analysis. It includes four parts:Part one is of theoretical analysis of circular agriculture and fiscal and taxation policy. This part firstly elaborated the concept of circular agriculture, the characteristic as well as the importance of circular agriculture development. Secondly, through the analysis on agricultural externality, it illustrated the relevance between fiscal and taxation policy and development of circular agriculture, the necessity of using fiscal and taxation policy to promote circular agriculture development.Part two is an analysis of our country's current fiscal and taxation polices for circular agriculture. This part has analyzed present fiscal and taxation policy and problems in terms of three aspects, including financial subsidy, agricultural financial investment and agricultural taxation. Firstly, this article analyzed financial subsidy on agricultural ecology and ecological environmental construction before our country join into WTO. Secondly, this article analyzed the structure of agricultural finance investment, presented insufficiency of financial expenditure on agricultural infrastructure construction and agricultural scientific research, which restricted the development of agriculture. Thirdly, this article summarized related taxation policy on circular agriculture, pointed out problems in current fiscal and taxation policy, such as, lack of system, insufficiency of financial expenditure, narrow scope of policy, etc.Part three referred to oversea fiscal policy on circular agriculture and recommendation. This part introduced developed countries fiscal policy for developing circular agriculture, proposed experiences for recommendation. For instance, take circular agriculture as guidance of fiscal expenditure, increase fiscal subsidy on circular agriculture, adjust the structure of fiscal subsidy, reform the way of subsidy way, etc.Part four plays an important role in this article. It referred to financial and taxation recommendation on the development of circular agriculture. On the basis of existing problems of fiscal and taxation policy in our country and combining the above-mentioned international reference meanings towards our country, article has proposed fiscal and taxation policy. In terms of fiscal policy, it recommended increasing agricultural fiscal input, adjusting structure of agricultural input, transferring the way of fiscal subsidy, establishing subsidy on agricultural ecological environment, etc. With regard to taxation policy, it recommended perfect value-added tax, enterprise income tax, resource tax, etc.