| Since the establishment of China's value-added tax, it has undergone several major adjustments to change. In 1984 the value-added tax was introduced in China by the second step "tax for profit".In first of all, taxes on certain industrial products In accordance with the difference. Specific tariff lines as follows:Machinery and machine parts, Automobile, Motor vessel, Bearing, Agricultural machinery and spare parts, Billet, Steel, Bicycle, Sewing machine,fan, Dyeing silk, Western medicine.After then more and more goods in taxable items of Product tax. In 1994 China carried out a comprehensive reform of tax system. New VAT has changed into price of foreign tax. Tax base includes all of production, marketing, wholesale, retail of tangible movable products. In this reform, a standard VAT system has established, but also left some problems like fixed assets can not offset and scope of taxation doens not cover all goods and service.Currently Business tax on transportation, storage, post, rental and business services. In the case of the two tax working, business tax as the tax base in accordance with the total turnover, does not have the features of the deduction belong to VAT, resulted in double taxation. This point affect the deepening social division of labor and mass production and industrial restructuring, hindered the growth of service industries. Therefore we must further deepen the reform, expand the scope of VAT.Reform would encounter many difficulties,include tax increase, tax rate setting,financial system etc. In order to steadily promote the reform, should be step by step, planned for expanding the scope of VAT.First step, Value-added tax levied on closely linked with industrial production industry like transportation, storage. At the same time should be improve related measures, regulate financial distribution system, lay down scientific and reasonable statutory value-added and standard deduction. In order to fully play the role of VAT for the deepening division of labor. |
PDF Full Text Request